Article 69 - Taxation of Islamic Finance Transactions
(1) This Article applies to any
QFC Entity entering into an Islamic Finance Transaction with an Islamic Financial Institution.
(2) If on making a claim a
QFC Entity can show, to the reasonable satisfaction of the Tax Department, that by entering into an Islamic Finance Transaction it has either—
(a) paid an amount of tax earlier; or
(b) over the period of the transaction paid a greater amount of tax, than would have been the case if the transaction had been entered into as a
Conventional Finance Transaction, then an adjustment may be made to the self-assessment of the QFC Entity for the Accounting Periods covering the period of the transaction.
(3) An adjustment under this Article shall be such as is required to put the
QFC Entity in the same position, with respect to its liability to tax, that would have been the case if the Islamic Finance Transaction had been entered into as a Conventional Finance Transaction.
|Amended (as from 18th June 2014)|