Schedule 26 - Non-resident companies: transactions
Finance Bill
4:45 pm
Mr Stephen O'Brien (Eddisbury, Conservative)
It is important that I do not seek to advance arguments for putting in legislation words and definitions that are not well established within the meaning of independence. The definition of a broker acting in an independent capacity is already contained in the Bill and earlier tax legislation. The issue at stake is not so much the question of how the action takes place in an independent capacity, which is established, but the way in which the provisions work. When a broker transacts business for a lower-than-customary fee or commission, he must act in an independent capacity; otherwise, there would be a link that would raise other presumptions.