Corporation Tax, Finance Act 2009
- Part I Principles of Corporation Tax
- Chapter 2 Income Classification, Rates and Dates
- 2.1 INTRODUCTION
- 2.2 INCOME CLASSIFICATION
- 2.3 CATEGORISATION OF INCOME
- 2.4 TRADING INCOME TAXED BY REFERENCE TO CASE I OR CASE III
- 2.5 INTELLECTUAL PROPERTY
- 2.6 DEVELOPMENT PROJECTS
- 2.7 CASE IV
- 2.8 CATEGORIES OF INCOME
- 2.9 PAYMENT AND FILING DATES
- APPENDIX I REVENUE OPINION ON TRADING STATUS OF CERTAIN ACTIVITIES
- Chapter 3 Capital Allowances
- 3.0 PRELIMINARY COMMENTS
- 3.1 INTRODUCTION
- 3.2 CAPITAL ALLOWANCES – METHOD OF DEDUCTING
- 3.3 MACHINERY OR PLANT
- 3.4 INITIAL ALLOWANCE
- 3.5 WEAR AND TEAR
- 3.A REVENUE PRECEDENTS
- 3.6 ACCELERATED WEAR AND TEAR OR FREE DEPRECIATION
- 3.7 ACCELERATED WEAR AND TEAR OR INITIAL ALLOWANCE
- 3.8 MOTOR VEHICLES
- 3.9 BALANCING ALLOWANCES/CHARGES
- 3.10 GRANTS
- 3.11 LEASING
- 3.12 INDUSTRIAL BUILDINGS
- 3.13 URBAN RENEWAL – DESIGNATED AREAS
- 3.14 DECIDED CASES – INDUSTRIAL BUILDINGS
- 3.15 QUALIFYING EXPENDITURE
- 3.16 INDUSTRIAL BUILDING ALLOWANCE
- 3.17 BUILDINGS BOUGHT UNUSED
- 3.18 SUMMARY OF RATES
- 3.19 WRITING DOWN ALLOWANCE (ANNUAL ALLOWANCE)
- 3.20 ACCELERATED WRITING DOWN ALLOWANCE OR FREE DEPRECIATION
- 3.21 SHORT ACCOUNTING PERIOD
- 3.22 LIFE OF AN INDUSTRIAL BUILDING
- 3.23 BALANCING ALLOWANCES OR CHARGES
- 3.24 SUBSEQUENT PURCHASERS
- 3.25 NOTIONAL INDUSTRIAL BUILDINGS WRITING DOWN ALLOWANCE/TEMPORARY DISUSE
- 3.26 THE 10% RULE
- 3.26A REVENUE PRECEDENTS
- 3.27 LESSORS OF INDUSTRIAL BUILDINGS
- 3.28 CAPITAL ALLOWANCES WHERE A COMPANY COMMENCES TO TRADE
- Chapter 4 Losses
- 4.0 LATEST DEVELOPMENTS
- 4.1 INTRODUCTION
- 4.2 CATEGORISATION OF LOSSES
- 4.3 PART I: TRADING LOSSES – CASE I
- 4.4 MANUFACTURING LOSSES AND CHARGES
- 4.5 CORRESPONDING ACCOUNTING PERIODS
- 4.6 ORDER OF LOSS RELIEF CLAIMS
- 4.7 VALUE OF LOSSES
- 4.8 TIME LIMIT FOR CLAIMS
- 4.9 RELIEF FOR TRADING CHARGES
- 4.10 GROUP RELIEF
- 4.11 PART II: TRADING LOSSES – CASE III
- 4.12 CASE IV LOSSES
- 4.13 CASE V LOSSES
- 4.14 EXCESS CASE V CAPITAL ALLOWANCES
- 4.15 TERMINAL LOSS RELIEF
- 4.16 CAPITAL LOSSES
- 4.17 PART III: RESTRICTIONS ON LOSS RELIEF
- 4.18 ANTI-AVOIDANCE PROVISIONS
- 4.19 COMPANY RECONSTRUCTION WITHOUT A CHANGE IN OWNERSHIP
- Chapter 6 Distributions and Withholding Tax
- 6.0 LATEST DEVELOPMENTS
- 6.1 INTRODUCTION
- 6.2 MEANING OF DISTRIBUTION
- 6.3 DIVIDEND WITHHOLDING TAX
- 6.4 SECURITISATION
- 6.5 WITHHOLDING TAX VOUCHERS
- 6.6 DECLARATIONS
- 6.7 FOREIGN ASPECTS
- 6.8 EU PARENT/SUBSIDIARY DIRECTIVE
- 6.9 RECIPIENT OF DISTRIBUTION
- 6.10 PAYING A DIVIDEND (OR OTHER DISTRIBUTION) – SUMMARY
- Chapter 7 A Company Purchasing its Own Shares
- 7.0 LATEST DEVELOPMENTS
- 7.1 INTRODUCTION
- 7.2 TAX RELIEF UNDER TCA 1997 PART 6 CH9
- 7.3 FORM OF COMPANY
- 7.4 ENABLING FACILITY
- 7.5 FUNDS USED TO PAY INHERITANCE TAX
- 7.6 TREASURY SHARES
- 7.7 SURCHARGE ON CLOSE COMPANIES
- 7.8 TAXATION OF SHARE DEALERS
- 7.9 RETURNS AND INFORMATION
- 7.10 TAX CONSIDERATIONS FOR COMPANY
- 7.11 CIRCUMSTANCES IN WHICH A COMPANY CAN BUY ITS OWN SHARES-LEGAL POSITION
- 7.12 POWER TO ISSUE REDEEMABLE SHARES
- 7.13 WHAT HAPPENS TO SHARES WHEN THEY ARE REDEEMED?
- 7.14 TREASURY SHARES
- 7.15 CONVERSION OF EXISTING SHARES TO REDEEMABLE
- 7.16 COMPANY PURCHASING ITS OWN SHARES
- 7.17 FORM OF PURCHASE
- 7.18 PARENT/SUBSIDIARY SHARES
- Chapter 8 Close Companies
- 8.0 LATEST DEVELOPMENTS
- 8.1 INTRODUCTION
- 8.2 MEANING OF THE TERM “CLOSE COMPANY”
- 8.3 EXCLUDED COMPANIES
- 8.4 DEFINITIONS
- 8.5 TESTS IN DETERMINING CLOSE COMPANY STATUS
- 8.6 IMPLICATIONS OF BEING A CLOSE COMPANY
- 8.7 BENEFITS-IN-KIND AND EXPENSES
- 8.8 INTEREST TO DIRECTORS OR ASSOCIATES
- 8.9 LOANS TO PARTICIPATORS
- 8.10 LOAN ARRANGEMENTS AND ANTI-AVOIDANCE
- 8.11 SURCHARGE ON INVESTMENT, ESTATE AND PROFESSIONAL INCOME
- 8.12 CALCULATION OF DISTRIBUTABLE ESTATE AND INVESTMENT INCOME
- 8.13 FRANKED INVESTMENT INCOME
- 8.14 DISTRIBUTABLE ESTATE AND INVESTMENT INCOME
- 8.15 MANUFACTURING COMPANIES
- 8.16 SURCHARGE ON A SERVICE COMPANY
- 8.17 OTHER TAXATION ISSUES FOR CLOSE COMPANIES
- 8.18 COMPANY LAW ISSUES FOR CLOSE COMPANIES
- 8.19 CHIEF COMPANY LAW PROVISIONS
- APPENDIX I DETAILED EXAMPLE OF SURCHARGE (NOT A SERVICE COMPANY) CALCULATION
- APPENDIX II ACCUMULATED UNDISTRIBUTED INCOME
- APPENDIX III CERTAIN PUBLICLY QUOTED COMPANIES NOT REGARDED AS “CLOSE”
- APPENDIX IV COMPANIES ACT 1990 TRANSACTIONS INVOLVING DIRECTORS
- Chapter 9 Groups: Payments & Losses
- 9.0 LATEST DEVELOPMENTS
- 9.1 INTRODUCTION
- 9.2 PART I – INTRA-GROUP PAYMENTS
- 9.3 OBLIGATION TO DEDUCT INCOME TAX
- 9.4 GROUP PAYMENTS – RELIEF FROM WITHHOLDING TAX
- 9.5 EXCEPTION TO INTRA-GROUP RELIEF: SHARE-DEALING COMPANIES
- 9.6 DEFINITION OF A GROUP
- 9.7 PART II – GROUP RELIEF FOR LOSSES
- 9.8 FORMS OF GROUP RELIEF AVAILABLE
- 9.9 RELATION OF GROUP RELIEF TO OTHER RELIEFS
- 9.10 CORRESPONDING ACCOUNTING PERIODS
- 9.11 COMPANIES JOINING OR LEAVING A GROUP OR CONSORTIUM
- 9.12 MAKING A CLAIM FOR GROUP RELIEF
- 9.13 RESTRICTION OF GROUP RELIEF
- 9.14 PAYMENTS FOR GROUP RELIEF
- 9.15 BENEFITS OF GROUP RELIEF CLAIMS
- 9.16 GROUPS AND CONSORTIA: DEFINITIONS
- 9.17 SHARE-DEALING COMPANIES
- 9.18 RESIDENCE
- 9.19 CONSORTIUM RELIEF
- 9.20 NOTIONAL WINDING-UP: THE RETURNED AMOUNT
- 9.21 LIMITED RIGHTS TO PROFITS OR ASSETS
- 9.22 DIMINISHING SHARE OF PROFITS AND ASSETS
- 9.23 BENEFICIAL OWNERSHIP OF SHARES
- APPENDIX I DETAILED EXAMPLE OF GROUP LOSS RELIEF
- Chapter 10A Companies’ Capital Gains
- 10A.0 LATEST DEVELOPMENTS
- 10A.1 INTRODUCTION
- 10A.2 WHAT IS MEANT BY A GROUP?
- 10A.3 MAIN RELIEVING PROVISION: GENERAL
- 10A.4 ANTI-AVOIDANCE PROVISIONS
- 10A.5 COMPANY LEAVING A GROUP
- 10A.6 PRE-ENTRY LOSS
- 10A.7 DEEMED DISPOSAL OF COMPANY ASSETS ON CHANGE OF RESIDENCE
- 10A.8 TAX EXEMPTION ON CAPITAL GAINS ON THE DISPOSAL OF CERTAIN SUBSIDIARIES (SEE ALSO 10.B)
- 10A.9 COMPANY AMALGAMATIONS AND RECONSTRUCTIONS
- 10A.10 THE EU MERGER DIRECTIVE
- Chapter 11 Double Taxation Relief
- 11.0 LATEST DEVELOPMENTS
- 11.1 FRAMEWORK OF DOUBLE TAXATION RELIEF
- 11.2 DOUBLE TAXATION -ISSUES ARISING
- 11.3 FORMAT OF TREATIES
- 11.4 UNILATERAL CREDIT FOR FOREIGN TAX
- 11.5 EU PARENT/SUBSIDIARY DIRECTIVE
- 11.6 ARBITRATION CONVENTION
- 11.7 DEDUCTION FOR FOREIGN TAX
- 11.8 COMPANY RESIDENCE
- 11.9 RELIEFS FOR WHICH RESIDENCE IS NOT REQUIRED
- 11.10 CERTAIN DIVIDENDS FROM A NON-RESIDENT SUBSIDIARY (OPERATIVE ONLY IF CERTIFICATE ISSUED PRIOR TO 15 FEBRUARY 2001)
- 11.11 TAX RELIEF FOR CERTAIN BRANCH PROFITS (OPERATIVE ONLY IF APPROVAL RECEIVED PRIOR TO 15 FEBRUARY 2001)
- 11.12 IRELAND/UK TAX TREATY INTRODUCTION
- 11.13 IRISH TAX TREATIES
- Chapter 12 Investment Companies and Other Special Companies
- 12.0 INTRODUCTION
- 12.1 INVESTMENT COMPANIES
- 12.2 PROPERTY RENTAL COMPANIES
- 12.3 INDUSTRIAL & PROVIDENT SOCIETIES
- 12.4 AGRICULTURAL AND FISHERY SOCIETIES
- 12.5 FARMING COMPANIES
- 12.6 COMPANIES IN PARTNERSHIP
- 12.7 COMPANIES IN LIQUIDATION
- 12.8 INSURANCE COMPANIES
- 12.9 MINING COMPANIES
- 12.10 PETROLEUM COMPANIES
- 12.11 COLLECTIVE INVESTMENT UNDERTAKINGS (UCITS)
- 12.12 CONTROLLED FOREIGN COMPANIES (CFC)
- 12.13 HOLDING COMPANIES LOCATION
- 12.14 BUILDING SOCIETIES
- 12.15 CHARITABLE COMPANIES
- 12.16 SECURITISATION COMPANIES
- APPENDIX I RENTAL INCOME (ACCOUNTANCY & ADMINISTRATIVE COSTS)
- APPENDIX II SECOND SCHEDULE FINANCE ACT, 1978 (AS AMENDED)
- Chapter 13 Self-Assessment, Pay and File and Administration
- 13.0 LATEST DEVELOPMENTS
- 13.1 SELF-ASSESSMENT
- 13.2 DETAILS OF SELF-ASSESSMENT/PAY AND FILE FOR COMPANIES
- 13.3 SURCHARGE FOR LATE SUBMISSION OF RETURNS
- 13.4 REVENUE AUDIT
- 13.5 INSPECTION OF RECORDS
- 13.6 OTHER REVENUE POWERS
- 13.7 LINKING DOCUMENTS
- 13.8 PUBLICATION OF NAMES OF TAX DEFAULTERS
- 13.9 MANDATORY REPORTING REQUIREMENTS
- 13.10 ADMINISTRATION
- 13.11 PENALTIES
- 13.12 NOTICE OF LIABILITY TO CORPORATION TAX
- 13.13 RETURN OF PROFITS (INCLUDING LATE RETURN PENALTIES)
- 13.14 RETURN OF CHARGEABLE ASSETS/THIRD PARTY RETURNS
- 13.15 PENALTIES
- 13.16 ASSESSMENTS TO CORPORATION TAX
- 13.17 MAKING OF ESTIMATED ASSESSMENTS
- 13.18 COLLECTION OF CORPORATION TAX
- 13.19 INTEREST ON LATE ASSESSMENTS
- 13.20 PRIORITY IN LIQUIDATIONS
- 13.21 APPEAL PROCEDURES
- 13.22 CERTAIN PENALTIES
- 13.23 INCOME TAX ON PAYMENTS
- 13.24 SUMMARY OF PRINCIPAL CORPORATION TAX TIME LIMITS
- 13.25 REVENUE OFFENCES
- 13.26 REVENUE OFFENCES – DUTIES OF ADVISERS
- 13.27 TAX CLEARANCE CERTIFICATE IN RELATION TO PUBLIC SECTOR CONTRACTS
- 13.28 APPLICATION OF INCOME TAX ADMINISTRATIVE PROVISIONS
- 13.29 GENERAL ANTI-AVOIDANCE
- 13.30 REVENUE TECHNICAL SERVICE
- APPENDIX I INTERNAL REVIEW PROCEDURE FOR REVENUE AUDITS
- APPENDIX II SUMMARY OF PRINCIPAL CORPORATION TAX TIME LIMITS
- APPENDIX III STATEMENT OF PRACTICE SP-GEN/1/99 REVENUE POWERS (FINANCE ACT 1999)
- APPENDIX IV SECTION 68: REVENUE POWERS
- APPENDIX V STATEMENT OF PRACTICE (SP-GEN/1/93)
- APPENDIX VI REVENUE POWERS FINANCE ACT 2002
- APPENDIX VII SECTION 38: EXCHANGE OF INFORMATION
- APPENDIX VIII LIST OF ARTICLES IN TAX BRIEFING (UP TO APRIL 2008) THAT CONTINUE TO BE RELEVANT TO CORPORATION TAX
- Part II Corporation Tax Compliance
- Chapter 14 Review of the Financial Statements .
- 14.1 INTRODUCTION
- 14.2 PREPARATORY PHASE
- 14.3 ACCOUNTING PERIODS
- 14.4 REPORT OF THE BOARD OF DIRECTORS
- 14.5 AUDITOR’S REPORT
- 14.6 STATEMENT OF ACCOUNTING POLICIES
- 14.7 PROFIT AND LOSS ACCOUNT
- 14.8 BALANCE SHEET
- 14.9 SUMMARY OF THE PREPARATION STAGE
- APPENDIX.I EXTRACT FROM ACCOUNTS FOR A LIMITED COMPANY WITH A TURNOVER LESS THAN €20,000,000.
- APPENDIX .I EXAMPLE OF A BALANCE SHEET
- Chapter 15 Corporation Tax Computation
- 15.1 INTRODUCTION
- 15.2 CAPITAL EXPENSE ADJUSTMENTS
- 15.3 REVENUE EXPENSE ADJUSTMENTS
- 15.4 MOTOR EXPENSES
- 15.5 GENERAL PROVISIONS
- 15.6 GENERAL EXPENSE ADJUSTMENTS
- 15.7 OTHER EXPENSE ADJUSTMENTS
- 15.8 RESEARCH AND DEVELOPMENT CREDIT
- 15.9 CAPITAL EXPENDITURE
- 15.10 KNOW HOW
- 15.11 EMPLOYEE/DIRECTOR EXPENSES
- 15.12 PENSION CONTRIBUTIONS
- 15.13 FOREIGN EXCHANGE GAINS AND LOSSES
- 15.14 DONATIONS
- 15.15 CHARGES ON INCOME
- 15.16 INTEREST
- 15.17 EXPENSES WHICH RELATE TO OTHER SOURCES OF INCOME
- 15.18 CREDIT FOR TAX PAID
- 15.19 INCOME ADJUSTMENTS
- 15.20 EXCLUDED INCOME
- 15.21 CASE III
- 15.22 DEPOSIT INTEREST RETENTION TAX
- 15.23 CASE IV
- 15.24 CASE V
- 15.25 CHARGEABLE GAINS
- 15.26 MISCELLANEOUS RECEIPTS
- APPENDIX I REVENUE GUIDELINES FOR RESEARCH AND DEVELOPMENT TAX CREDIT
- APPENDIX II APPROVED BODIES
- APPENDIX III RELIEF FOR INVESTMENT IN FILMS
- APPENDIX IV INVESTMENT IN RENEWABLE ENERGY GENERATION
- APPENDIX V MINE REHABILITATION ALLOWANCE
- APPENDIX VI DETAILED EXAMPLE OF CORPORATION TAX COMPUTATION AND SUPPORTING SCHEDULES
- Chapter 16 International Financial Reporting Standards (IFRS)
- 16.0 BACKGROUND
- 16.1 FIRST-TIME ADOPTION – IFRS 1
- 16.2 HEDGE & DERIVATIVE ACCOUNTING FINANCIAL INSTRUMENTS – IAS 39
- 16.3 INCOME/EXPENSE RECOGNITION
- 16.4 BAD DEBTS/LOAN LOSS PROVISIONING – IAS 39
- 16.5 PENSION ACCOUNTING – IAS 19 (EMPLOYEE BENEFITS)
- 16.6 SHARE-BASED PAYMENTS – IFRS 2
- 16.7 GOODWILL – IFRS 3 (BUSINESS COMBINATIONS)
- 16.8 LEASES – IAS 17
- 16.9 INTANGIBLE ASSETS IAS 38 – (COMPUTER SOFTWARE/ CAPITALISED WEB COSTS)
- 16.10 FIXED ASSETS – IAS 16 (PROPERTY, PLANT AND EQUIPMENT)
- 16.11 RESEARCH AND DEVELOPMENT
- 16.12 DIVIDEND ACCRUAL – IAS 10 (EVENTS AFTER THE BALANCE SHEET DATE)
- 16.13 SPECIAL PURPOSE ENTITIES – IAS 27 (CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS) AND SIC 12 (CONSOLIDATION – SPECIAL PURPOSE ENTITIES)
- 16.14 FOREIGN CURRENCY – IAS 21
- 16.15 DOUBLE TAXATION RELIEF
- 16.16 ROYALTIES
- 16.17 INTEREST-FREE/PREFERENTIAL LOANS
- 16.18 SUMMARY OF MAIN CHANGES
- 16.19 ANTI-AVOIDANCE PROVISIONS
- 16.20 PRELIMINARY TAX PAYMENTS – FINANCIAL INSTRUMENTS
- 16.21 INSURANCE COMPANIES
- APPENDIX.I TAXATION OF INSURANCE COMPANIES