SCHEDULES
SCHEDULE 4Avoidance involving profit fragmentation arrangements
3Transfer of value deriving directly or indirectly from a business
1
In determining whether value deriving directly or indirectly from a business is transferred from the resident party to the overseas party, account is to be taken of any method, however indirect, by which—
a
any property or right is transferred or transmitted, or
b
the value of any property or right is enhanced or diminished.
2
Sub-paragraph (1) applies in particular to—
a
sales, contracts and other transactions made otherwise than for full consideration or for more than full consideration,
b
any method by which any property or right, or the control of any property or right, is transferred or transmitted by assigning—
i
share capital or other rights in a company,
ii
rights in a partnership, or
iii
an interest in settled property,
c
the creation of an option affecting the disposition of any property or right and the giving of consideration for granting it,
d
the creation of a requirement for consent affecting such a disposition and the giving of consideration for granting it,
e
the creation of an embargo affecting such a disposition and the giving of consideration for releasing it, and
f
the disposal of any property or right on the winding up, dissolution or termination of a company, partnership or trust.
3
Value may be traced through any number of individuals, companies, partnerships, trusts and other entities or arrangements.
4
The property held by a company, partnership, trust or other entity or under any arrangements must be attributed to the shareholders, partners or members, beneficiaries or other participants at each stage on a just and reasonable basis.