Corporation Tax Act, 1976

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Return of profits.

143.—(1) A company may be required by a notice served on it by an inspector or other officer of the Revenue Commissioners to deliver to the officer within the time limited by the notice a return of the profits of the company computed in accordance with this Act—

(a) specifying the income taken into account in computing those profits, with the amount from each source,

(b) giving particulars of all disposals giving rise to chargeable gains or allowable losses under the provisions of the Capital Gains Tax Act, 1975 , and this Act and particulars of those chargeable gains or allowable losses, and

(c) giving particulars of all charges on income to be deducted against those profits for the purpose of the assessment to corporation tax.

(2) A notice under this section may require a return of profits arising in any period during which the company was within the charge to corporation tax.

(3) Every return under this section shall include a declaration to the effect that the return is correct and complete.

(4) A return under this section which includes profits which are payments on which the company has borne income tax by deduction shall specify the amount of income tax so borne.

(5) A notice under this section may require the inclusion in the return of particulars of management expenses, capital allowances and balancing charges which have been taken into account in arriving at the profits included in the return.

(6) Paragraph 3 (3) (4) of Schedule 4 to the Capital Gains Tax Act, 1975 (power to demand information about the acquisition of assets), shall apply in relation to a notice under this section as they apply in relation to a notice under any of the provisions of the Income Tax Acts, as applied in relation to capital gains tax by the said paragraph 3.

(7) Section 174 of the Income Tax Act, 1967 (production of accounts and books), shall apply where a company is required to make, or makes, a return under this section relating to profits which consist of or comprise those arising from a trade as it applies where a person is required to make, or makes, a return for the purposes of income tax of the profits or gains arising to him from any trade.

(8) (a) If any company has been required by notice served under the foregoing provisions of this section to deliver a return and the company fails to comply with the notice—

(i) the company shall be liable to a penalty of £500 except in the case mentioned in paragraph (b) and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £50 for each day on which the failure so continues, and

(ii) the secretary of the company shall be liable to a separate penalty of £100 except in the case mentioned in paragraph (b).

(b) Where any such failure as is mentioned in paragraph (a) continues after the expiration of one year beginning with the date on which the notice was served the first of the penalties mentioned in the said paragraph for which the company is liable shall be £1,000, and the secretary of the company shall be liable to a separate penalty of £200.

(9) Where a company fraudulently or negligently—

(a) delivers an incorrect return under the provisions of this section, or

(b) makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief in respect of corporation tax, or

(c) submits to an inspector, the Revenue Commissioners or the Appeal Commissioners any incorrect accounts in connection with the ascertainment of the company's liability to corporation tax,

the company shall be liable to a penalty of—

(i) £500, or, in the case of fraud, £1,000, and

(ii) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (10), and

the secretary of the company shall be liable to a separate penalty of £100, or, in the case of fraud, £200.

(10) The difference referred to in subsection (9) is the difference between—

(a) the amount of corporation tax payable by the said company for the accounting period or accounting periods comprising the period to which the return, statement, declaration or accounts relate, and

(b) the amount which would have been the amount so payable if the return, statement, declaration or accounts had been correct.

(11) The provisions of section 501 (3) of the Income Tax Act, 1967 (failure to correct an error not made fraudulently or negligently), shall apply for the purposes of this section as they apply for the purposes of the said section 501.

(12) (a) Section 191 of the Income Tax Act, 1967 (error or mistake), shall apply in relation to corporation tax as it applies in relation to income tax under Schedule D.

(b) Any return under this Act shall be in such form as the Revenue Commissioners prescribe.

(c) In this section “return” includes any statement, declaration or list.