Taxation (International and Other Provisions) Act 2010 section 371RF

Power to amend section 371RE etc.

Section 371RF gives the Treasury regulation-making powers to update or replace the accounting standards test used to determine whether a person controls a company for controlled foreign company (CFC) purposes.

• The Treasury can amend the accounting standards control test in section 371RE to reflect changes to Financial Reporting Standard 2 (FRS 2) or any document that replaces or updates it
• A "relevant document" covers not only a direct replacement for FRS 2 but also any subsequent document that replaces, modifies, amends or revises that replacement, and so on through successive iterations
• The Treasury can make regulations applying an alternative accounting standard for consolidated financial statements to determine control, in place of section 371RE, where a person prepares or must prepare consolidated accounts under that alternative standard
• The Treasury can also specify conditions under which a company will not be treated as a CFC by virtue of the accounting standards control test or any equivalent test introduced by regulations