TaxZone Guide: Accounting for interest from associate companies

The question of whether a parent company in receipt of interest is carrying on a business and so to be counted as an associate came up again in Any Answers last week like a bad penny.

"Carrying on a business" is a much wider concept than carrying on a trade. The productive management of investments, for instance can amount to a business, whilst it will not amount to trading. As we are talking tax, each case must decided by looking at the facts.


» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.