(1)Where the underlying profits of a member of a multinational group for an accounting period reflect the inclusion of international shipping profits, the member’s underlying profits for that period are to be adjusted to exclude those profits.
(2)The member’s international shipping profits for the period are the sum of the member’s—
(a)core international shipping profits (see section 157), and
(b)ancillary international shipping profits (see section 158).
(3)Subsection (1) does not apply if, in the period, the strategic and commercial management of any ship used in international shipping giving rise to those profits is not effectively carried on within the territory in which the member is located.
(4)In this section, and in sections 157 and 158—
“international shipping” means the transportation of passengers or cargo by ship between different territories;
“transportation” does not include towing or dredging.