Commentary on Sections Part 2: Regional secondary contributions holiday for new businesses Section 10: Anti-avoidance
84.This section sets out an anti-avoidance rule.
85.Subsection (1) provides that the Holiday is not available if P starts the new business pursuant to avoidance arrangements.
86.Subsection (2) defines “avoidance arrangements” by reference to the purpose for which the arrangements were made. The Holiday will not be available to P if the main purpose, or one of the main purposes, of P in being party to such arrangements is that they result in P carrying on activities as part of the new business which might otherwise have been carried on as part of another business (whether by P or any other person), but which P carries on as part of the new business in order to obtain Holiday deductions or refunds (or increased deductions or refunds).
87.“Arrangements” are then defined at section 11(1) in a non-exhaustive manner to include “any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable)”.