Profits after tax determine reserve transfers for dividends; current profits include prior year adjustments and reserve writebacks. The Transfer of Profits to Reserves Rules require the percentage transfer to be calculated on current profits, which must be read as profits after tax. Accounting items such as the write back of a development rebate reserve and adjustments relating to previous years must be included when determining those current profits for the purpose of the mandatory reserve transfer.
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.
Profits after tax determine reserve transfers for dividends; current profits include prior year adjustments and reserve writebacks.
The Transfer of Profits to Reserves Rules require the percentage transfer to be calculated on current profits, which must be read as profits after tax. Accounting items such as the write back of a development rebate reserve and adjustments relating to previous years must be included when determining those current profits for the purpose of the mandatory reserve transfer.
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