Taxes Consolidation Act 1997 section 4

Interpretation of Corporation Tax Acts

Section 4 sets out definitions and rules of construction used throughout the Corporation Tax Acts.

• Defines key terms including "company", "profits", "trade", "distribution", and accounting standards (GAAP/IFRS) for corporation tax purposes.
• Excludes certain public bodies (health boards, local authorities, vocational educational committees, agricultural committees) from the definition of "company" and taxes European Economic Interest Groupings on their individual members rather than the grouping itself.
• Clarifies how profits are measured at different stages: gross profits before deductions, total income from all sources, and the final net amount after all reliefs and deductions.
• Provides rules on the treatment of dividends (paid when due and payable), apportionments (made on a time basis), and the use of International Accounting Standards adopted by the EU with modifications.