Regulation 4 Limitation on apportionment of chargeable profits of a controlled foreign company—conditions to be satisfied

(1)

Paragraph (2) specifies the condition which is required to be satisfied as respects an accounting period, for the purposes of section 748(1)(e), by a controlled foreign company which is resident in a territory specified in Part I of Schedule 1 or, as the case may be, in Part I of Schedule 2, in that accounting period.

(2)

The condition specified is that the requirement with respect to the controlled foreign company’s income and gains specified in regulation 5 is satisfied by the controlled foreign company in relation to that accounting period.

(3)

Paragraph (4) specifies the conditions which are required to be satisfied as respects an accounting period, for the purposes of section 748(1)(e), by a controlled foreign company which is resident in a territory specified in column 1 of Part II of Schedule 1 or, as the case may be, in column 1 of Part II of Schedule 2, in that accounting period.

(4)

The conditions specified in this paragraph are that the controlled foreign company–

(a)

satisfies the requirement with respect to its income and gains specified in regulation 5 in relation to that accounting period, and

(b)

at no time during that accounting period–

(i)

is entitled to any tax exemption, tax reduction or other benefit, or

(ii)

falls within any condition,

specified in column 2 of Part II of Schedule 1 or, as the case may be, in column 2 of Part II of Schedule 2, opposite the specification of the territory in which the controlled foreign company is resident.