Corporate Tax Compliance Services - Gibraltar
Provision of Corporate Tax Compliance Services
1. This schedule sets out the scope of the Corporate Tax Compliance Services that we will provide. Any terms contained within this schedule apply only to the services specified.
2. We will provide corporate tax compliance services to you under the rules put in place by the Commissioner of Income Tax as a result of the implementation of the Income Tax Act 2010 (the “Act”). The first period for which we will provide these services will be determined in agreement with the Directors and in accordance with both the Act and the Fund’s offering documents.
3. We will prepare draft corporation tax returns and supporting computations for your review and approval, for submission, with your statutory accounts and any other information that is required to comply with the Act. The returns will be based on underlying information provided by the Directors.
4. The return forms incorporate a declaration that the company secretary or other authorised signatory is required to sign, to confirm that to the best of their knowledge the return is correct and complete. It is, therefore, important that you understand and agree with the return and supporting computations before they are submitted to the Income Tax Office, given that in some respects you will be better placed than us to identify any omissions of relevant matters and to judge the accuracy and adequacy of the various descriptions and analyses.
5. With your specific approval, we will submit the returns and supporting computations, together with your statutory accounts and any supporting information that is required by law to the Income Tax Office on your behalf.
6. We will prepare draft corporate dividend returns, where applicable, together with supporting computations for your review and approval, for submission, with any other information that is required to comply with the Act. The returns will be based on underlying information provided by the Directors.
7. When applicable we will notify you of the due dates for payment of corporation tax, including dates of payments on account and recommend amounts to be paid.
8. Under the Act, payments on account will be based on the prior period’s set of financial statements. Any underpayments arising may be subject to penalties imposed by the Income Tax Office. Consequently, we cannot accept liability for any interest or penalties arising from any under payment of tax.
Tax Rulings and Exemptions
9. Notwithstanding any tax exemptions available to the fund on its income by way of application of the Act, the Income Tax (Allowances, Deductions and Exemptions) Rules, 1992 or any other applicable Gibraltar legislation, we shall, if deemed necessary and upon approval by the directors, seek to obtain a tax ruling or other form of tax exemption as issued by the Income Tax Office, for any specific income-generating arrangement entered into by the Fund. Should this be required, this will be provided on a time-spent basis at applicable staff rates as agreed with you prior to commencement of the work.
Claims, elections and other returns
10. We will advise you of the necessary formalities in respect of claims and elections to the extent that they are not included in the return. We will also review potential claims and elections, in order to identify those that may be beneficial to your tax position, and make recommendations as appropriate.
11. You should be aware that certain tax elections are not linked to the submission of your tax return and the decision whether to make an election will depend on the availability of information and financial results. Accordingly, we do not accept responsibility for tax liabilities, interest or penalties arising from any delay in making claims or elections which are not linked to the submission of the tax return, except to the extent that we have been instructed by you to advise whether and by when the election should be made.
12. If your return is selected for Enquiry, we will, unless you instruct to the contrary, correspond with the Commissioner of Income Tax on your behalf and advise you in relation to any necessary negotiations regarding adjustments to the tax return. Any final decisions on amendments to the returns will be made by you. We will carry such work on the basis set out in this contract and an additional fee may be payable. If this is the case we will agree a basis for the fee calculation with you.
13. We will prepare amended corporate income tax returns and dividend returns, where necessary to reflect adjustments approved by you, whether following an enquiry or otherwise. Should this be the case we will agree a basis for the fee calculation for such work with you.
14. For the purposes of this schedule, we will write to and accept instructions from the directors who have the requisite competence to evaluate our services and to whom we will refer all substantive decisions relating to your tax compliance, or someone authorised to make decisions on their behalf.
15. It is essential that you provide us with all of the necessary information, to carry out our work in sufficient time to enable returns to be filed and payments made without incurring interest or penalties. If sufficient corporate income tax is not paid by the due dates, penalties will be payable. In addition, penalties may be incurred if a corporate income tax return is filed late.
16. We shall tell you what information we require and take reasonable steps to remind you to provide us with this information. As the performance of our work depends on you supplying this information, you agree that we shall have no responsibility for your liabilities, including interest, penalties and additional tax liabilities, caused or materially contributed to by your failure to supply us with complete and accurate information, or failure to return signed documentation, within a reasonable time, or delays caused or materially contributed to by providing us with inaccurate or incomplete information.
17. You are required to comply with any requirements set down by Gibraltar law to keep records in support of your returns for specified periods of time. Generally, companies must keep and preserve all relevant records for at least six years after the end of the accounting period to which they relate, although this period can be extended if the Commissioner of Income Tax issues a notice to enquire into the Fund’s return. During the course of our work, we will collect information from you and from others acting on your behalf and will return any original documents to you following the presentation of the return. You should retain these documents for the required period.
Authority to deal with the Commissioner of Income Tax
18. Unless we have already been designated as such, we will need your authority to act as your representative with the Income Tax Office. Notwithstanding this authority, please send us as soon as possible all correspondence which you receive, as in practice correspondence is not always copied to us by the Income Tax Office and we cannot be responsible for dealing with such notices unless they are sent to us.
19. We would ask you to keep us informed of your current trading position and of your changing business development plans (for example, in respect of capital expenditure, acquisitions of subsidiaries, properties or businesses, new trading ventures, transfers of cessations of trades, exceptional items, acquisition of certain foreign currency assets or liabilities, changes in foreign management structures etc.) to enable us to advise you of any relevant claims and elections that might be beneficial to your tax position or of any notification requirements for companies coming within the charge to tax.