Corporation Tax Act 2009, No. 4 (as amended)

The Corporation Tax Act 2009 (CTA 2009) is a key piece of legislation in the United Kingdom that governs the taxation of corporate profits. Here's a summary of its key aspects:

Purpose: The primary purpose of the Corporation Tax Act 2009 is to establish the framework for the assessment and collection of corporation tax on the profits of companies operating in the UK. It sets out the rules for calculating taxable profits, determining tax liabilities, and administering the tax system for corporate entities.

Requirements:

1. Taxable Profits Calculation: CTA 2009 outlines the rules and principles for calculating taxable profits of companies subject to corporation tax. This includes provisions for determining profits from trading activities, investment income, capital gains, and other sources, as well as allowable deductions, reliefs, and exemptions.
2. Tax Rate and Payment: The legislation specifies the corporation tax rates applicable to different categories of companies and taxable profits. It also sets out the deadlines and procedures for filing tax returns, making tax payments, and claiming reliefs or allowances.
3. Group Relief and Consolidation: CTA 2009 includes provisions for group relief, allowing companies within a corporate group to transfer losses and certain reliefs between group members to offset taxable profits. It also provides rules for the consolidation of group accounts for tax purposes.
4. Anti-Avoidance Provisions: The legislation contains anti-avoidance provisions aimed at preventing tax evasion, avoidance, and abusive tax planning schemes. These provisions empower HM Revenue and Customs (HMRC) to challenge transactions or arrangements designed to artificially reduce or eliminate tax liabilities.
5. Administration and Enforcement: CTA 2009 sets out the administrative procedures and enforcement powers of HMRC in relation to corporation tax. This includes requirements for record-keeping, compliance with tax regulations, and investigations into suspected tax evasion or non-compliance.

Applicability:

CTA 2009 applies to companies and corporate entities subject to corporation tax in the United Kingdom. This includes:

• UK resident companies, including private limited companies, public limited companies, and other corporate entities incorporated in the UK.
• Non-UK resident companies with a permanent establishment or trading presence in the UK, which are liable to corporation tax on profits derived from UK activities.
• Certain unincorporated associations, such as clubs, societies, and mutual associations, that are treated as corporate entities for tax purposes.

Overall, the Corporation Tax Act 2009 provides the legal framework for the assessment, calculation, and collection of corporation tax in the UK, ensuring that companies contribute their fair share of tax revenues to support public services and government expenditure.

The Corporation Tax Act 2009 (CTA 2009) establishes the framework for the assessment and collection of corporation tax on the profits of companies operating in the United Kingdom. While the Act itself does not explicitly outline evidence requirements, it sets out rules and procedures that necessitate the maintenance and provision of evidence to support various aspects of corporation tax compliance. Here's a summary of how evidence factors into compliance with CTA 2009:

1. Financial Records and Accounting: Companies subject to corporation tax under CTA 2009 are required to maintain accurate and up-to-date financial records, including accounting records, ledgers, invoices, and supporting documentation. These records serve as evidence of the company's financial transactions, income, expenses, assets, and liabilities, which are used to calculate taxable profits.
2. Tax Computations and Returns: Companies are required to prepare and file corporation tax computations and returns with HM Revenue and Customs (HMRC) in accordance with the requirements of CTA 2009. These computations and returns must be supported by accurate financial data, evidence of allowable deductions, reliefs, and exemptions, and any other relevant documentation required to calculate the company's tax liability.
3. Transfer Pricing Documentation: Companies engaged in cross-border transactions with related parties are required to comply with transfer pricing rules under CTA 2009. This includes preparing transfer pricing documentation to support the pricing of transactions between connected entities at arm's length prices. The documentation serves as evidence of the company's compliance with transfer pricing regulations and helps mitigate the risk of transfer pricing adjustments by tax authorities.
4. Group Relief and Consolidation: Companies claiming group relief or consolidating group accounts for tax purposes under CTA 2009 must maintain evidence of their eligibility for such reliefs or arrangements. This may include evidence of group membership, profit and loss transfer agreements, and compliance with specific requirements set out in the legislation.
5. R&D Tax Credits and Capital Allowances: Companies claiming research and development (R&D) tax credits or capital allowances under CTA 2009 must provide evidence to support their claims. This may include documentation of qualifying R&D activities, expenditure incurred, and assets eligible for capital allowances, as well as compliance with any relevant conditions or criteria set out in the legislation.
6. Compliance with Anti-Avoidance Provisions: Companies must comply with anti-avoidance provisions and disclosure requirements under CTA 2009, which may involve providing evidence to support the commercial substance and bona fide nature of transactions or arrangements. This includes documentation demonstrating the commercial rationale, economic substance, and arm's length nature of transactions to mitigate the risk of challenges by HMRC under anti-avoidance rules.

Overall, while CTA 2009 does not prescribe specific evidence requirements, compliance with its provisions necessitates the maintenance and provision of accurate, reliable, and comprehensive evidence to support various aspects of corporation tax compliance, including financial records, tax computations, transfer pricing documentation, eligibility for reliefs, and compliance with anti-avoidance provisions.