Commentary

B1.439 Distribution of assets on liquidation of body corporate carrying on mutual business

Business tax
Business tax | Commentary

B1.439 Distribution of assets on liquidation of body corporate carrying on mutual business

Business tax | Commentary

B1.439 Distribution of assets on liquidation of body corporate carrying on mutual business

In Stafford Coal and Iron Co Ltd v Brogan1, the respondent company was a member of a mutual insurance company. The articles of association directed that, in a liquidation, its surplus assets should be divided among the members (including past members) according to the proportion of the total premiums paid in the last five financial years preceding 1 January 1947. The members' premiums were allowed as deductions in computing their profits for tax purposes, but the insurance company was not assessed on the excess of its receipts over expenses. The insurance company went into voluntary liquidation, and the respondent received its share of the surplus which it placed to

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