| 释义 |
controlled foreign company
In order to limit the ability of a multinational group of companies to enjoy profit without any charge to UK tax, statute imposes a corporation tax charge on a UK company for profits generated by a “controlled foreign company” (CFC). The definition of a CFC and the mechanism for achieving this aim were both substantially revised by the Finance Act 2012 sch 20. A CFC is a company that is not resident in the UK but is controlled by persons (companies or individuals) resident within the UK. Profits of a CFC are charged on its UK resident corporate owners (but not on individuals owning the company) if they fall within what the Act describes as the “business profits gateway” or the “financial profits gateway”. Broadly, these are defined with the intention of bringing into charge profits that commercially may be expected to have arisen in the UK, if tax planning arrangements had not been effected to move the profits out of UK tax charge. Thus a subsidiary in a tax haven trading by using the assets of its UK parent is likely to have the subsidiary’s profits charged on the parent, by virtue of it being identified as a controlled foreign company. Where overseas profits are not brought into the UK tax net by the CFC legislation, a charge may arise to diverted profits tax, which is at a higher rate. |