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EH 25: Refund on liquidation
or “Getting your income equalisation account money back if your business is liquidated”
You could also call this:

“Refunds during business liquidation count as income”

If you receive a refund under section EH 25 when your business is being liquidated, you need to know that this refund is considered income. This income is treated as if you received it just before the liquidation process began. The law that says this refund is income is section CB 27, which deals with income equalisation schemes. You should be aware that this rule applies specifically to refunds given during liquidation.

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Next up: EH 27: Amendment of assessment

or “The Commissioner can change tax assessments at any time”
Next

Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 26Income when refund given on liquidation

  1. A refund under section EH 25 is income, under section CB 27 (Income equalisation schemes), derived by the person immediately before the liquidation starts.

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