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Tax implications for Liquidated Company

  • 21-05-2008 9:59am
    #1
    myxi
    Registered Users, Registered Users 2 Posts: 205 ✭✭


    Hi all

    I'm doing an essay question on voluntary liquidation and it asks whether a liquidated company could be pursued by the Revenue for tax unpaid prior to its liquidation. I've checked the Companies Act and I can't see anything relating to tax liabilities other than capital tax to be paid on monies received by shareholders etc. Could anyone point me in the right direction?

    Thanks!


Comments

  • #2
    johnfás
    Registered Users, Registered Users 2 Posts: 1,342 ✭✭✭johnfás


    The Revenue Commissioners are Preferential Creditors on the order of priorities for the repayment of debts by a liquidator. Outstanding PRSI falls into the same category. They are repaid after the liquidator's fees and fixed charger holders, but before everyone else.


  • #3
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,806 ✭✭✭GerardKeating


    johnfás wrote: »
    The Revenue Commissioners are Preferential Creditors on the order of priorities for the repayment of debts by a liquidator. Outstanding PRSI falls into the same category. They are repaid after the liquidator's fees and fixed charger holders, but before everyone else.

    If the liquidation fails to produce all the funds required to pay revenue, could reveune go after the directors ???


  • #4
    Rhonda9000
    Closed Accounts Posts: 451 ✭✭Rhonda9000


    GerardKeating wrote: »
    If the liquidation fails to produce all the funds required to pay revenue, could reveune go after the directors ???

    Not so long as the directors were not trading fraudulently. Re Kellys Carpetdrome Ltd to the best of my knowledge demonstrates success in recovering monies -using the fraudulent trading provisions of the Companies Acts- deliberately moved etc. out of the company prior to liquidation where revenue debts were already outstanding.


  • #5
    johnfás
    Registered Users, Registered Users 2 Posts: 1,342 ✭✭✭johnfás


    Rhonda9000 wrote: »
    Not so long as the directors were not trading fraudulently. Re Kellys Carpetdrome Ltd to the best of my knowledge demonstrates success in recovering monies -using the fraudulent trading provisions of the Companies Acts- deliberately moved etc. out of the company prior to liquidation where revenue debts were already outstanding.

    Yea, in which case the directors may be personally liable. It is a rare thing to prove mind you.


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