Transfer of assets: dissolution distributing assets among partners is not a transfer; third-party transfers trigger rebate withdrawal. The Board clarifies that division and distribution of a dissolved firm's assets among partners does not constitute a transfer, so distribution of the development rebate reserve to partners before the prescribed period does not attract liability and the rebate is not to be withdrawn; however, where assets are transferred to a third party on dissolution, the development rebate should be withdrawn.
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.
Transfer of assets: dissolution distributing assets among partners is not a transfer; third-party transfers trigger rebate withdrawal.
The Board clarifies that division and distribution of a dissolved firm's assets among partners does not constitute a transfer, so distribution of the development rebate reserve to partners before the prescribed period does not attract liability and the rebate is not to be withdrawn; however, where assets are transferred to a third party on dissolution, the development rebate should be withdrawn.
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