TPG2010 Chapter IX paragraph 9.192

Category: TPG2010 Part IV: Recognition of the actual transactions undertaken | Tag: , ,
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A full consideration of all of the facts and circumstances warrants a conclusion that the economic substance of the arrangement differs from its form. In particular, the facts indicate that Company Z has no real capability to assume the risks it is allocated under the arrangement as characterised and structured by the parties. Furthermore, there is no evidence of any business reasons for the arrangement. In such a case paragraph 1.65 allows a tax administration to not recognise the structure adopted by the parties.
(This is notwithstanding any possible application of general anti-avoidance rules and notwithstanding the question about Company Z’s place of effective management.)






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