SCHEDULES

SCHEDULE 4Avoidance involving profit fragmentation arrangements

8Double taxation

1

This paragraph applies where—

a

the resident party has paid a relevant tax by virtue of the application of paragraph 7,

b

at any time, the resident party or another person pays—

i

a further amount of the relevant tax, or

ii

an amount of non-UK tax corresponding to the relevant tax, and

c

the result is a double payment of tax calculated by reference to the same income or profits.

2

In order to avoid the double payment of tax, the resident party may make a claim in writing for one or more consequential adjustments to be made in respect of the tax paid mentioned in sub-paragraph (1)(a).

3

On a claim under this paragraph an officer of Revenue and Customs must make such of the consequential adjustments claimed (if any) as are just and reasonable.

4

The amount of any consequential adjustments must not exceed the lesser of—

a

the tax paid by the resident party as mentioned in sub-paragraph (1)(a), and

b

the tax paid as mentioned in sub-paragraph (1)(b).

5

Consequential adjustments may be made—

a

in respect of any tax period,

b

by way of an assessment, the modification of an assessment, the amendment of a claim or otherwise, and

c

despite any time limit imposed by or under any enactment.