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Controlled changes
As a result of changes to the rate of corporation tax in Ireland, the Government decided that it was no longer appropriate for companies operating there to enjoy automatic exemption from the United Kingdom's controlled foreign companies rules. The amending regulations, SI 2002 No 2406, required to give effect to this change have recently been laid before the House of Commons, and will take effect as regards accounting periods of controlled foreign companies beginning on or after 11 October 2002.
Controlled changes
As a result of changes to the rate of corporation tax in Ireland, the Government decided that it was no longer appropriate for companies operating there to enjoy automatic exemption from the United Kingdom's controlled foreign companies rules. The amending regulations, SI 2002 No 2406, required to give effect to this change have recently been laid before the House of Commons, and will take effect as regards accounting periods of controlled foreign companies beginning on or after 11 October 2002.
Automatic exclusion for companies in listed countries is one of a number of exemptions from the United Kingdom's controlled foreign companies rules. The remaining five exemptions will continue to apply to Irish controlled foreign companies, which means that United Kingdom owners of Irish controlled foreign companies will only be liable to a charge under the controlled foreign companies rules, if one of the main reasons for the existence of the controlled foreign company is to achieve a reduction of United Kingdom tax.
Copies of the regulations can be obtained from the Stationery Office.
(Source: Inland Revenue news release dated 20 September 2002.)
Revenue manual
The Inland Revenue's Corporate Finance Manual has been published and can be found on the Revenue's website at www.inlandrevenue.gov.uk/manuals/cfmmanual/index.htm.
Another blip
The Revenue's self-assessment online filing service has experienced more difficulties during late September. This time the problem was an inability to cope with the slowly growing number of people trying to use it. As an antidote, the Revenue suggested that people did not use the system between 7 pm and 11 pm, because the system could not handle the heavy demand during those hours. However, the Revenue has sorted out the problem, and has confirmed that the service is 'now working as it should'.
The Revenue's target of 50 per cent filing online by 2005 is still some way off, although the Revenue says that so far this year, over 122,000 taxpayers have successfully filed their tax returns online. At least this gives the Revenue time to tweak the system so that it can cope with five million taxpayers, rather than barely one per cent of that figure. Otherwise the message will be, please file at your convenience, but only at a time that suits the Revenue.
