Regulation 20 Meaning of financial contribution by a foreign authorityI1

United Kingdom

(1)

For the purpose of paragraph 3 of Schedule 4 to the Act, a foreign authority makes a financial contribution where—

(a)

the practice of a foreign authority involves a direct or potential direct transfer of funds or liabilities;

(b)

subject to paragraph (2), revenue otherwise due to a foreign authority is foregone or is not collected;

(c)

a foreign authority provides goods or services other than general infrastructure;

(d)

a foreign authority purchases goods; or

(e)

a foreign authority makes payments to a funding mechanism or entrusts or directs a private body to undertake one or more of the type of functions in sub-paragraphs (a) to (d), which would normally be vested in the foreign authority, and the practice in no real sense differs from practices normally followed by foreign authorities.

(2)

Where revenue due is foregone or not otherwise collected, the TRA may determine that no financial contribution has been made and in doing so the TRA must, in particular, have regard to footnote 1 and Annexes I to III to the Agreement on Subsidies and Countervailing Measures (being part of Annex 1A to the WTO Agreement) M1.

(3)

For the purpose of—

(a)

paragraph (1)(a), the direct or potential direct transfer of funds includes grants, loans, equity infusions and loan guarantees;

(b)

paragraph (1)(b), revenue otherwise due, which is foregone, includes fiscal incentives such as tax credits.

Regulation 20 Meaning of financial contribution by a foreign authorityI1

Annotations

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