Slump sale: lump-sum transfer without asset-wise valuation triggers special capital-gains computation and tax on transfer.
The note sets out that a Slump Sale is the sale of one or more undertakings for a lump-sum consideration without assigning values to individual assets and liabilities, and that a special provision governs computation of capital gains by reference to the Net Worth of the undertaking. Depreciable assets are valued at written down value of the block, certain asset categories may be nil, revaluation increases are ignored, and an accountant's report must accompany the return. Separate computations apply where multiple undertakings are sold. (AI Summary)