first_img CORPORATE TAX REFORMS Show Comments ▼ whatsapp Q.HOW LONG BEFORE ANY CONCRETE PROPOSALS?A.The consultation is likely to last for around six months. The Treasury then intends to bring forward permanent reforms to the CFC?regime in 2012. In the meantime the Treasury is proposing to put forward interim measures regarding the CFC regime in a Finance Bill next year. Q.WHAT IS BEING PROPOSED BY THE GOVERNMENT?A.The discussion paper puts forward proposals for foreign branch opt-in exemptions which it says will simplify the current tax regime. Currently UK companies are subject to corporation tax on the profits of their foreign branches, with credit given for foreign tax paid on the same profits, in order to relieve double taxation. Under the new proposals The Treasury proposes to exempt foreign branch profits in a similar way to the way in which foreign branch dividends were exempted in 2009. However the ABI has already raised concerns the transitional proposals – they will only be effective for one year – will be too complicated and drive more businesses overseas. Q. WILL THE UK REMAIN A SAFE PLACE FOR CORPORATE ASSETS?A.It would appear the answer is yes. Despite the move to a more territorial tax regime, the proposals do not apply to everything. So, tax deductions for debt taken out in the UK and invested offshore, in a foreign branch, will not be reformed. Currently, a company can claim a tax deduction in the UK for the interest paid on debt but the UK receives no taxable return on that investment. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesNoteabley25 Funny Notes Written By StrangersNoteableyHistorical GeniusHe Was The Smartest Man Who Ever Lived – But He Led A Miserable LifeHistorical GeniusWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”WanderoamMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Herald KCS-content center_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof Share whatsapp Monday 29 November 2010 8:43 pm Tags: NULLlast_img

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