Taxation 159
banks)is not to be treated by virtue of section 209(2)(e)(iii) of ICTA as being
a distribution forthe purposes of the Corporation Tax Acts.
Conclusion
The approach taken by the UK has been a success in enabling Islamic banks
to set up and operate while maintaining a tax system that applies equally to
all taxpayers irrespective of their religious practices. As a pioneer, the UK
has been closely watched by other countries considering how to develop
Islamic finance in their own territory.
