267L Application of this Chapter to certain payments made to companies in Switzerland.

(1) This section applies to a payment, being interest or royalties, made to or for the benefit of—

(a) where paragraph (b) does not apply, a company which—

(i) is the beneficial owner of the interest, or as the case may be the royalties,

(ii) is, by virtue of the law of Switzerland, resident for the purposes of tax in Switzerland, and

(iii) is not treated, by virtue of any arrangements made by the government of Switzerland with the government of any territory for the purposes of tax, as resident in any territory which is not—

(I) a Member State of the European Communities, or

(II) Switzerland,

or

(b) a permanent establishment situated in Switzerland through which a company carries on business in Switzerland, being a permanent establishment which would, in accordance with the Directive, be treated as the beneficial owner of the interest, or as the case may be the royalties.

(2) Sections 267G to 267I shall have effect in relation to a payment to which this section applies as if—

(a) a reference in those sections to a Member State of the European Communities included a reference to Switzerland,

(b) a reference in those sections to a company of a Member State included a company (being a company which takes one of the forms specified in Article 15 of the Agreement attached to the Council Decision (2004/911/EC) of 2 June 2004 on the signing and conclusion of the Agreement between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments and the accompanying Memorandum of Understanding¹) resident for the purposes of tax in Switzerland, and

(c) a reference in those sections to tax included any tax imposed in Switzerland which corresponds to income tax or corporation tax in the State.

(3) Section 267K applies in relation to this section as it applies in relation to sections 267G to 267I.