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Where Taxpayers and Advisers Meet

Liquidated company - can HMRC restore for tax purposes?

hewhohuntselves
Posts:4
Joined:Wed Feb 29, 2012 5:18 pm
Liquidated company - can HMRC restore for tax purposes?

Postby hewhohuntselves » Wed Feb 29, 2012 5:22 pm

Hi,

I'm writing with regard to a company which we are intending to liquidate. This company has, in the past five years, transfered some property to a company above it in the group at a value which might - and I stress might - be regarded as an undervalue. We are not intending to liquidate the company for tax reasons (instead, it is because the company is dormant), but I was wondering whether HMRC are able to 'unpick' a liquidation if they feel that an investigation into a company's past tax returns is justified so as to require the company to pay tax.

Alternatively, if the liquidation cannot be unwound, might the director's be liable for tax if an investigation found that there had been a transaction at undervalue?

Kind regards and thanks.

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: Liquidated company - can HMRC restore for tax purposes?

Postby section 44 » Sun Mar 04, 2012 4:05 pm

In short, if there is a tax liability then this would be recoverable.
might - and I stress might - be regarded as an undervalue
Clearly any liquidator would be interested in this.

hewhohuntselves
Posts:4
Joined:Wed Feb 29, 2012 5:18 pm

Re: Liquidated company - can HMRC restore for tax purposes?

Postby hewhohuntselves » Sun Mar 04, 2012 6:25 pm

True, but what if the potential tax liability is extremely abstract - there might be one, but equally there might not be.

Post-liquidation could the company, as opposed to the liquidator, be compelling to pay?


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