INTM254360 - Controlled Foreign Companies: definitions
Definitions: Controlled Foreign Company
Where in any accounting period a company is a 바카라 사이트榗ontrolled foreign company바카라 사이트� the provisions of Chapter IV apply in relation to that accounting period. A company is a 바카라 사이트榗ontrolled foreign company바카라 사이트� if it is -
- resident outside the United Kingdom,
- controlled by persons resident in the United Kingdom, and
- subject to a lower level of taxation in its territory of residence.
There is no definition of 바카라 사이트榗ompany바카라 사이트� in Chapter IV, so the definition at CTA2010/S1121 applies. A company is any body corporate or unincorporated association, but not a partnership. Where there is any doubt whether a particular entity is a company it will be necessary to obtain its constituting document and consider the relevant foreign legal provisions. Advice on this matter is available from the CSTD Business, Assets & International Base Protection Policy team.
The 바카라 사이트榓ccounting periods바카라 사이트� of a controlled foreign company are determined broadly on normal Corporation Tax lines but with some modifications. Full details are given at INTM254380.
There are a number of references to 바카라 사이트榬esident바카라 사이트� and 바카라 사이트榬esidence바카라 사이트� in (a), (b) and (c) above: 바카라 사이트榬esident outside the United Kingdom바카라 사이트�, 바카라 사이트榬esident in the United Kingdom바카라 사이트� and 바카라 사이트榯erritory of residence바카라 사이트�. Guidance on the differing meanings of these terms (and of other references to resident and residence in Chapter IV) is given at INTM254400.
The definition of 바카라 사이트榗ontrol바카라 사이트� for Chapter IV purposes is at ICTA88/S755D and is set out at INTM254370.
The test of whether a company is 바카라 사이트榮ubject to a lower level of taxation바카라 사이트� requires a comparison to be made between the taxes which it has paid on its profits in its 바카라 사이트榯erritory of residence바카라 사이트� and the Corporation Tax which it would have paid on its income if it had been resident in the United Kingdom. Guidance and examples of computations for the lower level of taxation test are given at INTM254380.