Article 99 - Artificial Arrangements

(1) To the extent that the Tax Department consider that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it is to be disregarded for the purpose of determining a Reimbursable Tax Loss to which a QFC Entity is entitled to make a claim for payment of a tax credit under this Part.
(2) Arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a QFC Entity to obtain:
(a) a tax credit under this Part to which it would not otherwise be entitled; or
(b) a tax credit under this Part to a greater amount than that to which it would otherwise be entitled.
(3) In this Article “arrangements” include any action, activity, scheme, agreement or understanding.
Inserted (as from 18th June 2014)