Corporation Tax Fundamentals

1. Overview of company law

1.1 Identify what a company is generally understood to mean

1.2 List the key characteristics of a limited company

2. Formation and operation of a company

2.1 Identify the filing requirements for forming a company under Irish company law

2.2 Describe the type of capital structures that companies can have

2.3 Describe the purpose of the constitution/memorandum and articles of association

2.4 Identify when a company’s meetings must be held

2.5 Outline a company’s obligations to make filings with the companies registration office

2.6 Explain when a company must have its annual accounts audited

2.7 Identify the elements of a company’s financial statements

3. Directors

3.1 Describe the role of directors of a company

3.2 Outline how the directors of a company are appointed

3.3 List the powers of directors

3.4 Explain the duties of directors

3.5 List the role and duties of the Company Secretary

4. Overview of the charge to corporation tax

4.1 Compare the taxation of a company’s income to the taxation of income in the hands of an individual

4.2 Outline the rules with regard to the tax residency of a company

4.3 Describe the basis of assessment for corporation tax

4.4 Outline the main sources of law for corporation tax

5. Business profits

5.1 Identify whether a company is in receipt of trading or other receipts

5.2 Identify whether or not expenses are deductible for corporation tax purposes

5.3 Identify if any relief is available for capital expenditure

5.4 Calculate any relief available for capital expenditure

5.5 Calculate the taxable business profits of a company

6. Investment income

6.1 Identify how investment income received by a company is taxed and calculate the taxable investment profits of a company

7. Using financial statements

7.1 Identify whether a company is carrying on a trade

7.2 Identify items in the financial statements which might lead to adjustment of the company’s taxable profits

8. Capital gains

8.1 Describe how a company is charged to tax on its capital gains

9. Losses and trade charges

9.1 Identify what relief is available to a company for losses incurred

9.2 Identify what relief is available to a company for trade charges

9.3 Calculate the taxable income of a company after relief for losses and trade charges

10. Groups

10.1 Identify if a group exists for corporation tax purposes

10.2 Calculate any group relief available

10.3 Describe what relief is available for the transfer of assets between group companies

11. Close company provisions

11.1 Explain why close company legislation was introduced

11.2 Identify if a company is a close company

11.3 Describe the implications of being a close company

11.4 Calculate any tax or surcharges due by a close company

12. Dividends, distributions and dividend withholding tax

12.1 Identify whether or not a payment by a company constitutes a dividend or distribution

12.2 Identify if dividend withholding tax should be applied to a dividend or distribution

12.3 Calculate any dividend withholding tax arising on a dividend or distribution

12.4 Identify when any dividend withholding tax withheld must be paid to Revenue and any forms which must be filed

13. Other withholding taxes

13.1 List the three main withholding taxes (other than dividend withholding tax) in Ireland

13.2 Identify when each withholding tax should apply; how relief is claimed for tax withheld; when any withholding tax withheld must be paid to Revenue; and any forms that must be filed

14. Trading overseas

14.1 Explain how Irish companies are taxed on income from overseas

14.2 Describe how relief may be granted to Irish companies for foreign tax suffered

15. Administration

15.1 Describe the pay-and-file system for corporation tax

15.2 Identify the key pay-and-file dates for corporation tax

15.3 Complete the relevant returns

15.4 Understand the mandatory requirement to file accounts and computations in iXBRL format

15.5 Outline what interest and penalties can apply where pay-and-file dates are missed