Article 30 - Disallowance of Tax Losses on a Change in Ownership

(1) Where—
(a) within an Ownership change period there is a major change in the nature or conduct of the Licensed Activities carried on by a QFC Entity; or
(b) at any time after the scale of the activities carried on by a QFC Entity under its QFC Licence become negligible, and before any significant revival of those activities, there is a change in the Ownership of the QFC Entity, no relief shall be available for tax losses carried forward from an Accounting Period ending before the change in Ownership to an Accounting Period ending after the change in Ownership.
(2) An "Ownership change period" is the period commencing one year before and ending two years after a change in Ownership.
(3) For the purposes of this Article an Accounting Period shall be treated as ending on the day of the change in Ownership.
(4) The apportionment of Chargeable Profits or tax losses between the period before and after a change in Ownership shall be on a time basis unless it can be shown, to the satisfaction of the Tax Department, that such a method would produce an unjust or unreasonable result for the QFC Entity when such other method may be used as appears to the Tax Department to produce a just and reasonable result.
(5) A major change in the nature of the Licensed Activities shall include a major change in the contents of the QFC Licence.
(6) A change in Ownership in a QFC Entity shall be determined in accordance with Article 31.
Amended (as from 18th June 2014)