When is a company or a close corporation liquidated?
SARS has issued an alert confirming when the liquidation or the “winding-up” of a company takes place.
SARS recently issued an updated version of its Frequently Asked Questions document, in respect of Deceased Estates. An alert has been issued by Mazars in this regard, which can be accessed here.
SARS subsequently also issued an alert, which confirms that the liquidation or the “winding-up” of a company takes place, when the following occurs:
- When a company is unable to pay its debts by application of the creditors; or a voluntary application by shareholders of a company or members of a close corporation (commonly referred to as a creditors’ voluntary liquidation); or
- In the case of a solvent company/close corporation, by an application by shareholders of a company or members of a close corporation.
For more information on this topic, click here.
03/08/2022