Where a company in liquidation made profits which were to be taken into account for Corporation Tax even though they might never be realisable, the tax payable had priority over the claims of the creditors. In this case the prime asset of the company was a debt due from a connected company. It would not be paid, but the law deemed it to receive interest and that the interest was taxable.
Citations:
Times 29-Mar-2000, Gazette 14-Apr-2000
Statutes:
Income and Corporation Taxes Act 1988
Jurisdiction:
England and Wales
Corporation Tax, Insolvency, Company
Updated: 10 May 2022; Ref: scu.82253
