(1) Subject to subsections (2) and (3), where in an accounting period -
(a) the accounting profits of a controlled foreign company are less than €750,000 and the amount of those profits representing non- trading income is less than €75,000, or
(b) the accounting profits are less than €75,000,
section 835R shall not apply.
(2) Where an accounting period is less than 12 months, the amounts referred to in subsection (1) shall be reduced proportionately.
(3) This section shall not apply where -
(a) any arrangements are entered into,
(b) as a consequence of such arrangements subsection (1) would, apart from this subsection, apply, and
(c) it would be reasonable to consider that the main purpose, or one of the main purposes, of the arrangements is to secure that subsection (1) applies.
(4) A reference in subsection (3) to the application of subsection (1) includes a reference to the application of that subsection as modified in accordance with subsection (2).