The
‘required basis’ for calculating the
notional foreign tax is one that allows losses arising on the
transfer to be set against gains to the extent permitted generally
by the relevant overseas law and in which all reliefs available to
the transferor have been claimed.
If advice is needed on foreign tax regimes, Revenue staff can
obtain this from Revenue Policy International, External Relations
Group.
‘EU company’ is one incorporated under
the law of a member State.
‘Securities’ includes shares.
‘Residence in an EU state’ means a
company must be within the charge to tax under that state’s
law because it is resident for the purpose of the charge (not
simply because it has a source of income there) and it must not be
treated as resident in a non-member state by virtue of a tax
treaty.
There is a provision for companies to seek advance clearance
that the last condition in
CIRD42060 (the commercial purpose test)
is satisfied. The Anti-Avoidance Group (Intelligence), Clearance
and Counteraction Team deals with all clearance applications and
the procedure is described in
CIRD42100.
Where a company submits tax computations on the basis that
relief under paragraph 87 is available and there is no record of a
clearance application, inspectors should send a report and the file
to the Anti-Avoidance Group (Intelligence), Clearance and
Counteraction Team.
Unlike the equivalent CG tax provision in
TCGA92/S140C, there is no requirement that intangible
asset taxable credits and deductible debits resulting from the
transfer be aggregated before computing the relief available.
Instead companies have to claim on an asset-by-asset basis.
