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Voluntary Liquidation When Deemed Income

Voluntary Liquidation When Deemed Income

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We have a client who is selling their client base and will be paid over a 2 year period

They would like to liquidate their company, once all taxes, etc paid, and then lay 10% tax on the distribution

Can this be done when the additionally monies have not been received or do they need to wait until all funds are in cash?

He will of course be getting an insolvency practitioner involved, but I wanted to check this out first

Thank you

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By johngroganjga
22nd Jan 2016 07:41

It would be much more complicated to assign the right to the unpaid consideration than to distribute cash. You will need to ask the intended liquidator exactly how complicated it would be and how it would impact on fees and timing.

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