There are circumstances in which the definition of tax avoidance
purpose in paragraph 13(5) – a 'purpose that consists in
securing a tax advantage (whether for the company or any other
person)' – will mean that paragraph 13 will apply to loan
relationship debits of facilitators of tax avoidance schemes. The
type of circumstance is where a person (the facilitator) enters
into a loan relationship with a view to participating in a
transaction or a series of transactions which are designed to
secure a tax advantage for another person – then paragraph 13
may apply to that loan relationship.
Paragraph 13 also applies to borrowings taken in order to
provide funds which the borrower is to apply for the purpose of
participating in a tax avoidance scheme even though the tax
avoidance does not result directly from any relief obtained in
respect of the borrowing.
