Taxation (International and Other Provisions) Act 2010 section 86

Section 83(2) and (4): schemes about claims or elections etc.

Section 86 targets schemes or arrangements where actions taken (or deliberately not taken) by participants — such as making claims, elections or securing reliefs — have the effect of increasing or creating a claim for double taxation credit relief.

• A scheme or arrangement is caught where a participant takes a step, or deliberately omits to take a step, that increases or gives rise to a claim for credit relief under Part 2 of TIOPA 2010.
• The relevant steps include claiming reliefs, deductions, reductions or allowances, and making elections for tax purposes, whether under the law of any territory or under any double taxation arrangements.
• It does not matter whether the step (or omission) occurred before the scheme was entered into, nor does the reason for taking or not taking the step matter — only its effect of boosting or creating the credit relief claim is relevant.
• A "participant" is any person who is party to, or concerned in, the scheme or arrangement.