CTM03850 - Corporation Tax: small companies: extent of enquiries by Inspector

In some cases extensive enquiries may not be required in considering whether a company has an associated company. For example, if it is clear that none of the company's shareholders or their spouses has shares in (or has made a settlement involving any shares in) or has made loans to another company, further enquiries need not be made. Depending upon the nature of any potential association, however, it may be necessary in other cases to gather more detailed information to consider whether an association actually exists, particularly where there is a potential fragmentation of profits.