SCHEDULES

SCHEDULE 26Non-resident companies: transactions through broker, investment manager or Lloyd’s agent

2Brokers

1

In relation to a transaction carried out on behalf of a non-resident company, a broker is regarded as an agent of independent status acting in the ordinary course of his business if, and only if, the following conditions are met.

2

The conditions are—

a

that at the time of the transaction he is carrying on the business of a broker;

b

that the transaction is carried out by him in the ordinary course of that business;

c

that the remuneration he receives in respect of the transaction for the provision of the services of a broker to the non-resident company is not less than is customary for that class of business; and

d

that he does not fall to be treated as a permanent establishment of the non-resident company in relation to any other transaction carried out in the same accounting period.