Imputation system and In-house bank: Difference between pages

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''Tax.'' 
(IHB).


A system formerly used in the UK and most other EU countries, which wholly or partially imputes to the shareholders some of the corporation tax paid by companies on the income out of which dividends are paid.
''Corporate treasury''.


The mechanism for imputation is a tax credit given to the shareholders at the time of a dividend, which can be used in full or partial payment of the individual's income tax liability.
In-house bank is a structural corporate treasury role where the central treasury acts as an internal bank for the group, all the subsidiaries dealing with the in-house bank.


This is a highly centralised arrangement, compared with advisory or agency treasury structures.


By contrast, 'classical system' tax rules - for example in the US - do not normally give any credit to individual investors for the corporate tax already paid by the corporations in which they have invested. 


This results in the effective double taxation of the related business profits.
It is sometimes written 'in house' bank without the hyphen.




The UK used an imputation system up to 2016. 
==See also==
 
* [[Advisory]]
From 2016 onward, the UK has used a classical system.
* [[Agency]]
 
* [[Centralised]]
 
* [[COBO]]
== See also ==
* [[Group]]
* [[Corporation Tax]]
* [[Payment factory]]
* [[Dividend]]
* [[POBO]]
* [[Income Tax]]
* [[Profit centre]]
* [[Tax credit]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]

Revision as of 10:03, 21 March 2016

(IHB).

Corporate treasury.

In-house bank is a structural corporate treasury role where the central treasury acts as an internal bank for the group, all the subsidiaries dealing with the in-house bank.

This is a highly centralised arrangement, compared with advisory or agency treasury structures.


It is sometimes written 'in house' bank without the hyphen.


See also

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