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EH 75: Refund on liquidation
or “Getting your thinning operations income equalisation account refunded when your business is liquidated”
You could also call this:

“Tax on refunds received when closing a business”

If you get a refund under section EH 75 when a business is closing down, you need to know that this money counts as income. The law says this refund becomes your income right before the business starts to close. This income is covered by section CB 27, which talks about income equalisation schemes. These schemes help spread out your income over time. You should count this refund as part of your income for tax purposes, even though you’re getting it as the business is ending.

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Next up: EH 77: Sections of main income equalisation scheme that apply to thinning operations income equalisation scheme

or “Rules from main scheme apply to thinning operations scheme with small changes”
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Part E Timing and quantifying rules
Income equalisation schemes: Refunds: on application

EH 76Income when refund given on liquidation

  1. A refund under section EH 75 is income, under section CB 27 (Income equalisation schemes), derived by the person immediately before the liquidation starts.

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