Associated companies

[missright]

Hi all

I'm just working on my corporation tax return and needed some clarification in the associated companies point.

My friend and I are joint directors. My friend has controlling interests in companies in Australia and I just wondered if these would be considered associated companies or are associated companies limited to those based in the uk?

Any clarification would be much appreciated.

Thanks in advance!

 

[RAL]

Are those Australian companies liable to uk taxation?

 

[missright]

No I don't think they are subject to uk tax

 

[jim_price]

The fact that those companies are resident in Australia doesn't make a difference, you need to consider whether your fellow director has control over the UK company if not then the problem goes away.

What are the shareholdings?
If there is no overall control given by shares is this given by Articles of Association/Shareholders Agreement?
Who deals with day to day running?
Is there much in the way of inter company trading/dependence?

 

[missright]

Hi

Thanks for your comments.

The shareholding is split 50:50. The other director does not own the companies is Australia but her husband does - does this fall within the rules?

The day to day running is undertaking by my father who is an employee of the company but any major decisions are firstly run past me and the then the other director if necessary.

Thanks in advance for any help with this!