Corporation Tax Act 2009 section 309

Companies without GAAP-compliant accounts

Section 309 sets out what happens when a company's accounts are not prepared in accordance with generally accepted accounting practice (GAAP), or when no accounts have been prepared at all.

• Where a company's accounts are not GAAP-compliant, or no accounts exist, the loan relationships rules apply as though GAAP-compliant accounts had been drawn up
• Any amounts referred to in the loan relationships rules are treated as the amounts that would have appeared in GAAP-compliant accounts for the relevant period
• This hypothetical approach extends to any earlier period of account on which the current period's figures depend
• GAAP-compliant accounts means accounts drawn up in accordance with generally accepted accounting practice