Tax deduction by liquidator required before depositing unpaid dividends into liquidation account; failure may attract tax liability. Amounts treated as unpaid dividends or undistributed assets payable into a liquidation account may be treated as dividends under the income tax definition if statutory conditions are satisfied. The liquidator, as the company's principal officer for tax purposes, must deduct and remit the required tax from such amounts before paying them into the liquidation account; failure to withhold and pay over tax exposes the liquidator to liability under the tax collection provisions.
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.
Tax deduction by liquidator required before depositing unpaid dividends into liquidation account; failure may attract tax liability.
Amounts treated as unpaid dividends or undistributed assets payable into a liquidation account may be treated as dividends under the income tax definition if statutory conditions are satisfied. The liquidator, as the company's principal officer for tax purposes, must deduct and remit the required tax from such amounts before paying them into the liquidation account; failure to withhold and pay over tax exposes the liquidator to liability under the tax collection provisions.
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