Finance Act, 1944

Transactions designed to avoid liability to corporation profits tax.

15.—(1) Where the Revenue Commissioners are of opinion that the main purpose for which any transaction or transactions was or were effected (whether before or after the passing of this Act) was the avoidance or reduction of liability to corporation profits tax, they may, if they think fit, direct that such adjustments shall be made as respects liability, in respect of any accounting period ending after the 31st day of December, 1943, to corporation profits tax as they consider appropriate so as to counteract the avoidance or reduction of liability to corporation profits tax which would otherwise be effected by the transaction or transactions.

(2) Without prejudice to the generality of the powers conferred by sub-section (1) of this section, the powers conferred by the said sub-section shall extend to—

(a) the charging with corporation profits tax of companies which, but for the adjustments, would not be chargeable with any corporation profits tax or would not be chargeable to the same extent,

(b) the charging of a greater amount of corporation profits tax than would be chargeable but for the adjustments.

(3) Any company aggrieved by a direction of the Revenue Commissioners under this section may appeal to the Special Commissioners, whether on the ground that the main purpose of the transaction or transactions was not the avoidance or reduction of liability to corporation profits tax or on the ground that no direction ought to have been given or that the adjustments directed to be made are inappropriate and in relation to any such appeal all the provisions relating to appeals against assessments to corporation profits tax shall apply.

(4) References in this section to corporation profits tax shall be construed as including references to excess corporation profits tax.