Income Tax Act 2007 section 312

Winding up of the relevant company

Section 312 ensures that a company being wound up is not automatically treated as failing the requirements of this Chapter, provided the winding up is commercially motivated and not a tax avoidance arrangement.

• A company undergoing winding up is not treated as failing the Chapter's requirements solely because of the winding up.
• The requirements must have been met by the company if the winding up were disregarded.
• The winding up must be carried out for genuine commercial reasons and not as part of a scheme whose main purpose, or one of whose main purposes, is tax avoidance.
• This provision supplements other winding-up rules elsewhere in the Chapter covering the relevant company, qualifying subsidiaries, and other companies, including cases of dissolution.