(1)     A party to an avoidance arrangement is an accommodating or tax-indifferent party if –

 

(a)     any amount derived by the party in connection with the avoidance arrangement is either –

 

(i)      not subject to normal tax; or

 

(ii)     significantly offset either by any expenditure or loss incurred by the party in connection with that avoidance arrangement or any assessed loss of that party; and

 

(b)     either –

 

(i)      as a direct or indirect result of the participation of that party an amount that would have –

 

(aa)   been included in the gross income (including the recoupment of any amount) or receipts or accruals of a capital nature of another party would be included in the gross income or receipts or accruals of a capital nature of that party; or

 

(bb)   constituted a non-deductible expenditure or loss in the hands of another party would be treated as a deductible expenditure by that other party; or

 

(cc)    constituted revenue in the hands of another party would be treated as capital by that other party; or

 

(dd)   given rise to taxable income to another party would either not be included in gross income or be exempt from normal tax; or

 

(ii)     the participation of that party directly or indirectly involves a prepayment by any other party,