2887.This Chapter sets out the obligations and liabilities of a UK representative of a non-UK resident company carrying on a trade through a permanent establishment in the United Kingdomin relation to the assessment, collection and recovery of corporation tax on the chargeable profits of the non-UK resident company attributable to the permanent establishment. As to “chargeable profits” see section 19 of CTA 2009.
2888.This section introduces the Chapter and sets out the rules for determining the extent to which and the period for which a permanent establishment is a UK representative. It is based on section 150(1) and (2) of FA 2003.
2889.A permanent establishment in the United Kingdom through which a non-UK resident company carries on a trade is the UK representative of the non-UK resident company in relation to the chargeable profits attributable to the permanent establishment. See Rule 1 in subsection (3).
2890.If a permanent establishment in the United Kingdom of a non-UK resident company ceases to be a permanent establishment through which the company carries on a trade, it nevertheless continues thereafter to be the UK representative of the non-UK resident company in relation to the chargeable profits attributable to the permanent establishment. See Rule 2 in subsection (3).
2891.This section treats the obligations and liabilities of the non-UK resident company in respect of the chargeable profits of the trade carried on through a permanent establishment in the United Kingdom as also being the obligations and liabilities of the UK representative. It is based on section 150(1) and (3) of FA 2003.
2892.This section sets out circumstances in which:
certain obligations or liabilities of a non-UK resident company attach to its UK representative (subsections (1) and (2));
a non-UK resident company is bound by the mistakes of its UK representative (subsection (3)); and
a UK representative may be proceeded against for a criminal offence (subsection (4)).
2893.It is based on section 150(4) to (6) of FA 2003.
2894.This section defines terms used in the Chapter. It is based on section 150(7) and(7A) of FA 2003.
2895.In the definition of “information” in subsection (1), the words “to the Commissioners for Her Majesty’s Revenue and Customs or to any officer of Revenue and Customs” have been substituted for the words “to the Board or any officer of the Board” in the source legislation. This gives effect to section 50(1) and (2) of CRCA which require references to the terms in the source legislation to be taken as references to the substituted terms.