BKM406700 | Banking surcharge: targeted anti-avoidance rule: the second CFC TAAR

TIOPA10 S371BI (7)-(9)

The first CFC TAAR provides for counteraction where business profits are transferred out of a controlled foreign company and the transfer is a relevant transfer and the main purpose, or one of the main purposes of the arrangements, is to avoid or reduce the CFC chargeable profits.

The second CFC TAAR provides for counteraction where the relevant interest in a controlled foreign company is moved from a banking company to a non-banking company and where there are arrangements where the main purpose, or one of the main purposes of the arrangements, is to avoid or reduce the CFC chargeable profits. If the TAAR applies, the relevant interest is treated as remaining with the banking company.