817W. Payment of royalties

(1) This section applies to a relevant payment of a royalty by a company to—

(a) an associated entity that is resident in a specified territory and is not resident in another territory that is not a specified territory, or

(b) a permanent establishment of an associated entity which is situated in a specified territory,

to the extent that the relevant payment of a royalty is not an excluded payment.

(2) (a) The receipt of a relevant payment of a royalty to which this section applies shall be deemed to be annual profits arising to the associated entity, or permanent establishment of the associated entity, referred to in subsection (1), as the case may be, from property in the State for the purposes of section 18(1).

(b) A relevant payment of a royalty to which this section applies shall be an annual payment charged with tax under Schedule D for the purposes of section 238(2).

(c) Subsections (3) and (4) of section 242A shall not apply to a relevant payment of a royalty to which this section applies.

(3) Section 757(2) shall not apply to a relevant payment of a royalty to which this section applies.

(4) Where an arrangement is entered into by any person and it is reasonable to consider that the main purpose or one of the main purposes of the arrangement, or any part of the arrangement, is the avoidance of the application of any of the provisions of this section to a relevant payment of a royalty, directly or indirectly, to an associated entity in a specified territory, then this section shall apply as if the arrangement, or that part of the arrangement, had not been entered into.