International Manual

INTM239100 - Controlled Foreign Companies: Assumed Taxable Total Profits, Assumed Total Profits and the Corporation Tax Assumptions: Introduction

A CFC바카라 사이트檚 assumed taxable total profits are computed in broadly the same way as its taxable profits would be computed for corporation tax purposes (exclusive of capital gains) if the CFC were resident in the UK. A CFC바카라 사이트檚 assumed total profits are its assumed taxable total profits before step 2 of CTA2010/S4(2) is taken i.e. deducting any reliefs against total profit.

The assumed taxable total profits for an accounting period will equate to the CFC바카라 사이트檚 chargeable profits determined on the basis that the CFC바카라 사이트檚 assumed total profits have been restricted to include only those profits that pass through the CFC charge gateway and that any amounts that have been relieved against those profits have also been restricted in a just and reasonable manner.

The CFC charge is then charged in relation to accounting periods of CFCs in accordance with TIOPA10/Part 9A/S371BC. This applies if a CFC has chargeable profits for the accounting period and none of the entity exemptions apply.

The corporation tax assumptions are applied as part of this computation in order to do the following:

• to establish the amount of a CFC바카라 사이트檚 assumed taxable total profits in accordance with TIOPA10/S371SB(1);
• to calculate the amount of 바카라 사이트渃orresponding UK tax바카라 사이트� for the purposes of the tax exemption;
• to calculate the amount of the CFC바카라 사이트檚 creditable tax.

Additionally, the corporation tax assumptions prescribe a limited number of modifications to the normal corporation tax rules. These are aimed at preventing avoidance of tax and ensuring continuity in the computation of assumed taxable total profits since a CFC may not be subject to an apportionment in each accounting period.