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A civil company engaged in commercial activity has queried whether being in the process of dissolution is sufficient to stop paying Corporation Tax, or whether it must complete the full dissolution and liquidation process. The DGT has ruled that, to cease being a taxpayer, the company must be formally extinguished and submit its final liquidation tax return.
This ruling clarifies that mere dissolution proceedings are insufficient to terminate tax liability; formal extinction and the filing of a final liquidation return are mandatory to cease being a taxpayer for Corporation Tax purposes.
The tax team reviews your specific situation.
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