Income Tax (Trading and Other Income) Act 2005 section 608W

Anti-avoidance

Section 608W provides an anti-avoidance rule designed to prevent people from entering into arrangements whose main purpose is to obtain a tax advantage in relation to the offshore receipts in respect of intangible property rules.

• The rule applies where a person enters into an arrangement with a main purpose of obtaining a tax advantage, either by ensuring a charge does not arise under section 608A or by exploiting a tax treaty in a way that contradicts its intended purpose
• Any tax advantage obtained through such arrangements can be counteracted by just and reasonable adjustments, including assessments, amended assessments, modification or disallowance of claims, or other appropriate measures
• Counteraction can be applied even where it would override the general provision giving effect to double taxation arrangements under section 6(1) of TIOPA 2010
• A "tax advantage" is broadly defined to include obtaining or increasing a relief, securing a repayment of tax, avoiding or reducing a charge or assessment, preventing an assessment from being made, deferring a tax payment or advancing a repayment, or avoiding an obligation to deduct or account for tax