(1) Part 33 of the Principal Act is amended by the insertion of the following Chapter after section 817T:

"Chapter 5 Outbound payments defensive measures

817U. Interpretation

(1) In this Chapter -

‘arrangement’ has the same meaning as it has in Part 35A;

‘associated entities’ shall be construed in accordance with subsection (3);

‘controlled foreign company charge’ has the same meaning as it has in Part 35B;

‘domestic tax’ means income tax, corporation tax or capital gains tax;

‘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 which is a contracting party to the EEA Agreement;

‘entity’ has the same meaning as it has in Part 35C;

‘excluded payment’ means a payment, or a portion thereof, made by a company to the extent that it is reasonable to consider that -

(a) an amount of income, profits or gains arising from the payment is within the charge to -

(i) supplemental tax,

(ii) foreign tax at a nominal rate greater than zero per cent, or

(iii) domestic tax, other than as applied by this Chapter,

or