INTM489735 - Diverted Profits Tax: application of Diverted Profits Tax: legislation – Finance Act 2015 – core provisions: the participation condition B - non-financing arrangements

The condition is met if at the time of making or imposing the material provision

• one of the relevant parties was directly or indirectly participating in the management, control or capital of the other, or
• the same person or persons was or were directly or indirectly participating in the management, control or capital of each of the relevant persons.

The detail of the meaning of “direct participation” and “indirect participation” is given at sections 157 to 163 TIOPA 2010 (see INTM412060) and the relevant elements of these sections are brought into the DPT rules.