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    Liquidating company avoid tax

    Thursday 7 January 2016In the autumn statement, the Government published plans to increase the rate of income tax that would be charged on company dividends - meaning that the income tax payable could exceed 30% and potentially increasing the incentives for Moneyboxing.The Government is concerned that if Moneyboxing were to be used repeatedly, by liquidating an existing company with retained profits and replacing it with a new company with the same activities ("Phoenixing"), this could give rise to unacceptable tax avoidance.Generally, there are three ways a corporation can be dissolved.Voluntary dissolution is when a corporation files a form with the state indicating that it no longer wants to be recognized as a corporate entity.By contacting us you are moving in the right direction.

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    Each matter is unique so please contact us for your free consultation so that we can help you.Corporations must register on the state level and dissolve in the same state in which they were incorporated.Dissolution does not absolve a corporation of its tax obligations, but will prevent future tax obligations.Anyone interested in exploring the option of putting their company into solvent liquidation ahead of the proposed changes is invited to contact Peter Whalley on 020 7242 2109 or Richard Warwick 023 8021 0856.Corporate dissolution is the process that ends a corporation's legal status as a single entity.

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