Irish Tax Institute - TaxFind: Business Taxes

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1. Introduction to corporation tax

1.1 Contrast income tax with corporation tax

1.2 Explain terms used when calculating corporation tax

1.3 Interpret legislation to apply income tax principles to allocate the income of corporates to the appropriate Schedule or Case

1.4 Interpret case law to determine if a company is trading and is therefore subject to the 12.5% corporate tax rate

1.5 Interpret legislation to apply capital gains tax principles to the taxation of corporate capital gains

1.6 Explain the application of the appropriate corporation tax rate to income from each source

1.7 Download and review the Form CT1 from ROS online

2. Application of income tax principles to the taxation of companies

2.1 Use the relevant sources of law to compare the rules that apply to deductions allowable in arriving at taxable income for corporation tax and those allowable for income tax purposes

2.2 Identify the disclosure notes and other sources that are relevant to the preparation of the corporation tax computation

2.3 Identify the disclosure notes that are relevant to other taxes

2.4 Calculate the taxable profits of an Irish corporate taxpayer

2.5 Justify the deduction or otherwise of expenses based on legislation and case law

3. Interest

3.1 Outline the different types of security a company can give for borrowings

3.2 Compare floating and fixed charges from the borrowers and lenders perspectives

3.3 Describe why a business might reserve title to goods sold

3.4 Outline the ways in which interest paid by a company can be deductible for corporation tax, including interest as a charge

3.5 Describe how recovery of capital, or deemed recovery of capital, can affect relief for interest

3.6 Outline when interest is treated as a distribution and the elections available

4. Other charges on income

4.1 Explain what is meant by “a charge on income” and identify when it arises

4.2 Conclude, based on tax law, what is meant by an annual payment and when it arises

4.3 Conclude, based on tax law, what relief is available for charges on income

4.4 Distinguish relevant trade charges and other charges and outline the relief available for each

4.5 Calculate the relief available for charges on income

4.6 Judge the optimal use of charges for a given set of circumstances

5. Relief for losses

5.1 Interpret the rules for trading losses relief and explain how they apply to a set of facts

5.2 Conclude on the use of trade charges to create or augment a trading loss and the displacement of trading loss carried forward by non-trade charges

5.3 Explain the restriction to trading loss relief that occurs on a change in ownership and in the nature or conduct of a trade

5.4 Compare the loss relief available to an Irish company for its Irish trade to that available for foreign trades

5.5 Conclude on the relief available for rental losses

5.6 Calculate the taxable profits for Irish and foreign properties after claiming loss relief

5.7 Assess if there are special loss relief rules relating to other sources of income and if relevant, apply these rules to calculate the applicable relief

5.8 Judge what loss reliefs are available and what restrictions apply. Apply all loss reliefs and restrictions in the correct order and identify any relief to be carried forward

6. Intellectual property & research & development

6.1 Outline the main forms of intellectual property and how they are exploited

6.2 Describe the main registration procedures for various forms of intellectual property

6.3 Describe the legal protections available for Intellectual property

6.4 Compare the circumstances in which licensing of intellectual property through Ireland is taxable as a trade and as an investment and judge which treatment is correct for a given set of circumstances

6.5 Set out the tax reliefs available in relation to specified intangible assets and apply in practical situations

6.6 Explain the application of the research and development tax credit

6.7 Explain the relief for key employees engaged in research and development

6.8 An awareness of the knowledge development box

6.9 Describe when film tax relief is available and when a claim for film tax credit can be made

6.10 Describe when digital games tax relief is available and when a claim for digital games tax credit can be made

7. Disposals of business assets and investments

7.1 Apply the rules of CGT to gains of a company when disposing of a business asset or investment

7.2 Explain the possible treatments of interest charged to capital for CGT purposes

8. Distributions

8.1 Define a “distribution” for tax purposes and compare it to a distribution for company law and accounting purposes

8.2 Outline how dividend withholding tax applies to a distribution

8.3 List the exemptions from dividend withholding tax and associated administrative requirements and apply these in practical situations

8.4 Assess the income tax or CGT implications of distributions in specie and the accounting treatment of these

8.5 Outline the tax implications of scrip dividends and the accounting treatment of these

8.6 Judge whether a transaction will be treated as a distribution for tax purposes and if so, calculate the tax arising on the distribution

8.7 Compare the taxation of distributions to the taxation of other methods of extracting cash from companies

8.8 Conclude on when different methods of cash extraction are most appropriate

9. Annual payments

9.1 Conclude on the application of withholding tax under Irish domestic legislation

9.2 Explain the administrative requirements for withholding tax

9.3 Judge if withholding tax applies, calculate the withholding tax, identify the tax return entries required and outline the appropriate accounting treatment

10. Close companies

10.1 Explain the reason behind close company rules

10.2 Outline the meaning of terms specifically related to the close company rules

10.3 Outline which companies are specifically excluded from being close companies

10.4 Judge whether a company is a close company or not

10.5 Detail the issues surrounding the provision of benefits to participators and associates

10.6 Detail the issues surrounding assets held on trust for participators and associates

10.7 Detail the issues surrounding interest paid to directors and directors’ associates and detail the transactions that affect the director’s current and loan accounts

10.8 Detail the issues surrounding the transfer of assets at an undervalue

10.9 Detail the issues surrounding loans to participators

10.10 Calculate the surcharge on undistributed investment and estate income

10.11 Calculate the surcharge on service companies

10.12 Recommend how a company can still meet its commercial objectives while reducing the surcharge payable

11. Accounting for tax charges and provisions

11.1 Calculate the deferred tax expense (or income) for the Statement of Comprehensive Income

11.2 Calculate the deferred tax provision for the Statement of Financial Position

12. Supporting the financial accounting and audit teams in reporting tax charges and provisions in the reporting cycle

12.1 Set out the requirements of the accounting standards (under FRS 102 and IFRS) relevant to the reporting of deferred tax

12.2 Reconcile the current expected tax charge with the current tax expense or income

12.3 Set out the main differences between Financial Statements prepared under FRS 102 and under IFRS, and identify what entities are most likely to report under FRS 102 and which under IFRS

12.4 Outline the tax issues that arise when Financial Statements are subsequently amended (IFRS and FRS102)

13. Financial audit

13.1 Understanding of the legal requirements concerning the presentation and maintenance of financial accounts

13.2 Outline and apply how tax balances are audited for purposes of the audit report in Irish financial statements and how the audit work is evidenced

13.3 Outline and apply when audit adjustments are required in tax balances for financial statements

13.4 An awareness of how uncertain tax positions arise in Irish financial statements and the appropriate provisioning

13.5 An awareness of the main requirements for disclosing uncertainties in income tax provisions (FIN 48)

14. Administration of corporation tax

14.1 Describe the self assessment system as it applies to companies

14.2 Outline the corporation tax exemption for start-up companies

14.3 Interpret legislation to outline a company’s obligations under the pay and file system

14.4 Use legislation to outline what reliefs can be denied to companies who fail to meet their pay and file obligation

14.5 Describe when an error or mistake claim may be made and the reasons for so doing

14.6 Describe when an expression of doubt may be made and the benefits of so doing

14.7 Explain company secretaries’ liability to pay certain penalties

14.8 Assess the pay and file obligations of a company and prepare a corporate tax return

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