Commentary

D7.441 BLAGAB trading receipts

Corporate tax
Corporate tax | Commentary

D7.441 BLAGAB trading receipts

Corporate tax | Commentary

D7.441 BLAGAB trading receipts

Because the I-E basis of assessment precludes a charge to tax on trade profits it would e possible for certain items of income that would otherwise go towards the measure of those profits, such as share underwriting commission received, refunds of commission paid and management fees from subsidiary companies, to escape tax if the company is assessed on the I-E basis. To prevent this the legislation provides for certain BLAGAB trading receipts to be brought into the I-E computation as income and applies where a company taxed on the I-E basis has receipts referable to BLAGAB which are taken into account in calculating its

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