Income Tax (Trading and Other Income) Act 2005 section 23D

Other definitions

Section 23D provides key definitions used throughout the group of sections (sections 23A to 23H) that deal with trade profit adjustments, specifically defining "arrangement", "tax advantage" and "connected" persons.

• An "arrangement" is defined very broadly to include any agreement, understanding, scheme, settlement, trust, transaction or series of transactions, whether or not legally enforceable
• A "tax advantage" covers a wide range of benefits including relief from tax, increased repayments, avoidance or reduction of tax charges, deferral of tax payments, and avoidance of obligations to deduct or account for tax
• The meaning of "connected" persons follows the standard definition in section 993 of ITA 2007, but with subsection (4) of that section disapplied
• These definitions apply for the purposes of the entire group of sections dealing with trade profit adjustments under sections 23A to 23H