Article 53 - Balancing Payments
(1) This Article applies where—
(a) the circumstances are as described in Articles 51(1)(a) and (b); and
(b) one or more payments (the "balancing payments") are made to the first taxpayer by the second taxpayer; and
(c) the sole or main reason for making those payments is that Article 48(3) applies.
(2) To the extent that the balancing payments do not in aggregate exceed the amount of the available compensating adjustment, those payments shall not be taken into account in computing the
Chargeable Profits or tax losses of either the first taxpayer or the second taxpayer.
(3) In this Article the "available compensating adjustment" means the difference between—
Chargeable Profits or tax losses of the second taxpayer computed on the basis of the actual conditions; and
Chargeable Profits or tax losses of the second taxpayer as they fall or would fall to be computed on a claim under Article 51(1),
for this purpose taking the amounts in subparagraphs (a) and (b) above as a positive amount if it is an amount of
Chargeable Profit and as a negative amount if it is an amount of tax loss.
|Amended (as from 18th June 2014)|