Taxation (International and Other Provisions) Act 2010 section 84

Section 83(2) and (4): schemes enabling attribution of foreign tax

Section 84 identifies schemes or arrangements that have the effect of shifting foreign tax from one source of income or chargeable gain to another, which is relevant to the restrictions on double taxation relief set out in section 83.

• This section targets schemes or arrangements that allow a participant to pay foreign tax on one source of income or chargeable gain, where all or part of that tax is properly attributable to a different source of income or chargeable gain.
• A participant is any person who is a party to, or otherwise concerned in, the scheme or arrangement in question.
• The section essentially catches arrangements designed to re-allocate foreign tax between different income or gain sources, potentially to gain a more favourable double taxation relief outcome.
• Where such a scheme or arrangement is identified, the provisions of section 83(2) and (4) apply to restrict the credit relief available accordingly.