.png)
.png)
Is this another wind-up?
KEY POINTS
- The winding-up of a company that had ceased to trade and had substantial reserves and cash leads to questions on whether it is subject to the targeted anti-avoidance rule in ITTOIA 2005 s 396B.
- Would advice to sell rather than liquidate a cash-rich company fall foul of the professional conduct in relation to taxation guidance?
- Parliament clearly stated that ITTOIA 2005 s 396B and s 404A would apply only when a close company was liquidated.
- HMRC chose to combat ‘phoenixism’ rather than ‘money-boxing’.
- The intention of the legislation was clear and approved by parliament.
The question ‘Is it a wind up?’ in Readers’ Forum on 6 July 2017 concerned the professional conduct in relation to taxation guidance (PCRT). In essence a client owned a company that...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
