The Controlled Foreign Companies (Excluded Countries) Regulations 1998
These Regulations disapply section 747(3) of the Income and Corporation Taxes Act 1988 (apportionment of a controlled foreign company’s profits among persons having an interest in the company) in cases where the controlled foreign company is resident in a territory specified in either of the two Schedules to the Regulations and satisfies one of two conditions. The first condition, which relates to a company which is resident in a territory specified in Part I of either Schedule, is that the company satisfies the income and gains requirement set out in the Regulations. The second condition, which relates to a company which is resident in a territory specified in Part II of either Schedule, is that the company not only satisfies the income and gains requirement but also is not entitled to any tax benefit, or does not satisfy any condition, specified in Part II of the Schedule in relation to the territory concerned. Schedule 1 to the Regulations relates to accounting periods of controlled foreign companies beginning before 9th July 1998, and Schedule 2 relates to accounting periods of controlled foreign companies beginning on or after that date.