Tax liability of companies in liquidation

I refer to Karm Farrugia's letter Answers Please (April 30). Return filing dates are statutorily prescribed (Legal Notice 127 of 1999 - Income Tax (Statutory Dates) Regulations) and apply to all companies irrespective of whether these are active, in the course of winding up or exempt. Such dates are incorporated within the internal system and additional tax for late filing is automatically applied, without distinction, to all late filers.

One cannot generalise and state that all companies in liquidation cannot be tax liable. It is accepted that companies in liquidation cannot engage in trading activities but one cannot just state that all companies in liquidation cannot be tax liable. Some companies may still be liable to tax on other sources of income as in the case of disposals of immovable property or bank interests, that both attract tax.

From the information available, the company in question is not readily identifiable. However, it must be appreciated that the officer afforded to handle correspondence relating to the revocation of additional tax is also engaged on other duties.