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Name
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Prepared
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File
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Year end: |
Reviewed by: |
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Subject: Corporation tax liability |
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Objective |
To ensure that corporation tax is fairly stated. |
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Method |
Obtain/prepare a corporation tax computation. Agree the provision to the profit and loss account. Agree the prior year assessment to the prior year provision. Ensure any under/over provision for prior years has been separately disclosed on the face of the P&L or in the notes. Review the current year tax control account. Ensure any interest paid has been treated as ‘interest payable and similar charges’ in the profit and loss account. Review the prior year computation for expenditure added back and compare to the current year computation. Review repairs and maintenance for capital expenditure that is disallowable. Ensure all client entertaining is disallowed. Ensure legal and professional fees are analysed, and any not related to trade are disallowed (including share issues and director disputes) Ensure interest payable and receivable is separately disclosed under non trade loan relationship rules. |
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Result |
Page ref: Comments: |
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Conclusion |
According to the audit work performed, the objective has been met/has not been met. Problems recorded: |
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©Lynnix (UK) Ltd 19
Oct 2007