(1) Part 27 of the Principal Act is amended by the insertion after Chapter 3 of the following:

"Chapter 4 Certain Offshore Funds - Taxation and Returns

747B. Interpretation and application.

(1) In this Chapter -

'chargeable period' has the same meaning as in section 321(2);

'EEA Agreement' means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

'EEA state' means a State, other than the State, which is a Contracting Party to the EEA Agreement;

'material interest' shall be construed in accordance with section 743;

'OECD' means the organisation known as the Organisation for Economic Co-operation and Development;

'offshore fund' has the meaning assigned to it by section 743;

'offshore state' means a State, other than the State, which is -

(i) a Member State of the European Communities,

(ii) a State which is an EEA state, or

(iii) a State which is a member of the OECD, the government of which have entered into arrangements having the force of law by virtue of section 826;