ato logo
Search Suggestion:

Special rule for companies that cease to exist

Last updated 4 December 2006

If a company that was a CFC at the beginning of its statutory accounting period ceases to exist before the end of that period, the end of the company's statutory accounting period is deemed to be immediately before it ceased to exist.

Example 11: Shortened statutory accounting period when a company ceases to exist

A CFC elects a statutory accounting period that aligns with its usual accounting period of 1 January to 31 December. The company members pass a resolution to wind up the company on 1 August 2003 and it is finally de-registered on 2 November 2003 in accordance with the corporation law in the company's country of residence. As the company ceased to exist during what was its statutory accounting period, the company's statutory accounting period is taken to be from 1 January 2003 to 2 November 2003.

End of example

QC18000