Oil Taxation Act 1983 section 2

Anti-avoidance: consideration received by connected persons for use or disposal of qualifying assets

Section 2 of Schedule 2 is an anti-avoidance provision that treats income received by a connected person for the use or disposal of a qualifying asset as if it were received by the participator, where the arrangement is designed to avoid petroleum revenue tax or corporation tax.

• Where a person connected with a participator receives consideration for the use or disposal of a qualifying asset, and the arrangement is mainly aimed at avoiding petroleum revenue tax or corporation tax, the consideration is treated as if the participator had received it.
• If multiple participators share the qualifying asset, the consideration received by the connected person is apportioned between them on a just and reasonable basis.
• Where the participator already includes in their tariff or disposal receipts an amount received from a connected person, only the excess of the connected person's third-party receipts over that amount is added to the participator's receipts, preventing double counting.
• The provision applies to both tariff receipts (for use of assets) and disposal receipts (for disposal of assets) as defined in sections 6 and 7 of the Act.