INTM215200 - Controlled Foreign Companies: before CTSA

Notice of direction: report for Board's direction

If the Inspector considers that a Board's direction may be required, a report recommending a direction must be submitted to CT & VAT, International CT.

The matters below should be included in the report :

• The name of the controlled foreign company.
• The accounting period for which a direction is wanted.
• The name of the United Kingdom group involved (if any).
• Brief details to show that the controlled foreign company is within the definition in ICTA88/S747 (1), see INTM201060.
• Brief reasons for the view that the company is unlikely to meet the terms of any of the statutory exclusions in ICTA88/S748 or the list of excluded countries. (The Inspector should say how far these points have been agreed with the group concerned).
• The name of the territory in which the Inspector regards the controlled foreign company as resident - see INTM202050.
• A computation of the controlled foreign company's chargeable profits and creditable tax for the accounting period concerned. The Inspector should also give details of any reliefs included in the computation of chargeable profits.
• The names and registered office addresses of every United Kingdom company that the Inspector thinks has had an interest - see INTM210040 - in the controlled foreign company. This is at any time during the accounting period.
• The Inspector's views on the basis for apportioning the controlled foreign company's chargeable profits etc - see INTM215360. Brief reasons should be given any apportionment on a basis other than shareholdings is suggested.
• If appropriate, details of any declaration under ICTA88/SCH24/PARA11 (3) - see INTM215260 and following pages or ICTA88/SCH25/PARA3 (2) - see INTM217020 - which the Inspector thinks necessary.

Normally the file should be sent with the report. However, if it is more convenient, only the correspondence pad relating to the controlled foreign company may be sent.