James Wilson sets out a risk-based approach to the rules.
Although the reaction to the draft CFC legislation released in January appears to have been generally positive in one area in particular the government has not succeeded in its original aims – that of avoiding complexity. Seventy-five pages of legislation and a series of gateways safe harbours and exemptions do not make for a regime that is simple to apply.
There are a number of different ways in which a CFC charge on the profits of a CFC can be avoided under the proposed regime. Profits falling outside the ‘gateways’ are outside the scope of the regime profits can be subject to an exemption ‘safe harbours’ might apply and ...
