Relevant shipping income rules exclude qualifying tonnage tax activity from book profit, with market value adjustments and AO review. Relevant shipping income for a tonnage tax company comprises profits from defined core activities and prescribed incidental activities; excess incidental receipts over a set proportion of core turnover are excluded and taxed otherwise. Transfers between tonnage and non-tonnage businesses must be valued at market value for computing relevant shipping income, subject to Assessing Officer adjustment where market-value computation is impracticable. Related-party adjustments, reasonable allocation of common costs and depreciation, and the exclusion of the shipping activity's book profit or loss from company book profit are operative measures.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Relevant shipping income rules exclude qualifying tonnage tax activity from book profit, with market value adjustments and AO review.
Relevant shipping income for a tonnage tax company comprises profits from defined core activities and prescribed incidental activities; excess incidental receipts over a set proportion of core turnover are excluded and taxed otherwise. Transfers between tonnage and non-tonnage businesses must be valued at market value for computing relevant shipping income, subject to Assessing Officer adjustment where market-value computation is impracticable. Related-party adjustments, reasonable allocation of common costs and depreciation, and the exclusion of the shipping activity's book profit or loss from company book profit are operative measures.
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