TTM05501 - Tax avoidance: Outline

It is a condition of remaining within tonnage tax that a company is not a party to any transaction or arrangement that is an abuse of the tonnage tax regime.

A transaction or arrangement is such an abuse if, in consequence, , the tonnage tax legislation falls to be applied in a way that results (or would but for this paragraph result) in:

• a tax advantage being obtained for:

• a company other than a tonnage tax company, or
• a tonnage tax company in respect of its non-tonnage tax activities,

or

• the amount of the tonnage tax profits of a tonnage tax company being artificially reduced.
  

References

FA00/SCH22/PARA41 (requirement not to enter into tax avoidance)

TTM17246