Taxation (International and Other Provisions) Act 2010 section 480

"Period of account" of worldwide group

Section 480 defines the meaning of "period of account" for a worldwide group, which is a fundamental concept used throughout the corporate interest restriction rules.

• A "period of account" is the period for which the worldwide group's consolidated financial statements are prepared
• The financial statements must be drawn up by or on behalf of the ultimate parent entity of the group
• A period of account can also arise where financial statements are treated as having been drawn up, even if actual statements were not prepared for that period
• The deemed financial statements provisions cover situations such as statements not prepared under acceptable accounting standards, or where no actual financial statements exist