835O Corresponding chargeable profits in the State

Summary

This section is relevant in determining whether the ETR exemption applies under section 835T. It sets out the assumptions that must be made and the rules that apply in determining the corresponding chargeable profits in the State of a CFC.

Details

(1) This section provides for the assumptions that should be made when determining the corresponding chargeable profits in the State of a CFC, as follows:

• that the CFC is resident in the State during the accounting period,
• that the company has been resident in the State since its first accounting period,
• that the CFC will continue to be resident in the State in subsequent accounting periods (unless it ceases to be regarded as a CFC),
• that, if the company was resident in the State when it wasn’t a CFC, that there is a break in residence between that accounting period where it was resident in the State and was not a CFC, and its first accounting period as a CFC,
• that the company is within the charge to corporation tax,
• that the accounting periods of the company are accounting periods for corporation tax purposes,
• that there is no change in the place or places at which the company carries on its activities,
• that the company is not a close company,
• that the company has made any necessary election or claim for the maximum amount of any relevant allowance, credit, deduction, relief or repayment allowable where necessary,
• that the company is not a member of a group or consortium,
• that the company is not entitled to double tax relief under the laws of its territory of residence.

(2) References to the first accounting period of the CFC mean the accounting period in which the CFC was first regarded as a CFC.

(3) Corporation tax arising on the profits of a trade of the CFC, carried on in the State through a branch or agency, is excluded.

Relevant Date: Finance Act 2021