Tax and Legal

Corporate Income Tax Computation and Planning

Most corporate tax adjustments are the same handful of items argued every year, and the ones that cost money are those where the accounting treatment was accepted without asking whether the tax treatment follows. This course works through them. Delegates work through the computation from accounting profit to taxable income, and the adjustments that recur: entertainment, donations, provisions, impairments and accruals. Capital allowances are covered in detail, including qualifying expenditure and the timing that decides the benefit. Interest deductibility and thin capitalisation limits follow. Losses, their carry forward and what a change of ownership does to them are addressed. Withholding taxes on payments to non residents are covered. Group relief and intra group transactions follow where available. Provisional tax, payment obligations and interest on underpayment are addressed. The course closes on planning that is defensible and on distinguishing it from arrangements that will be challenged.