Carry forward of losses depends on continuity of majority voting power; startup exception preserves losses if original shareholders continue. Carry forward and set off of losses in closely held companies is conditioned on continuity of majority voting power: losses from years prior to the previous year cannot be carried forward unless the persons holding a majority of voting power on the last day of the previous year are the same as those who held a majority when the loss was incurred; an eligible startup exception permits carry forward of losses incurred within seven years if original shareholders continue to hold their voting shares.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Carry forward of losses depends on continuity of majority voting power; startup exception preserves losses if original shareholders continue.
Carry forward and set off of losses in closely held companies is conditioned on continuity of majority voting power: losses from years prior to the previous year cannot be carried forward unless the persons holding a majority of voting power on the last day of the previous year are the same as those who held a majority when the loss was incurred; an eligible startup exception permits carry forward of losses incurred within seven years if original shareholders continue to hold their voting shares.
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