Cian O'Callaghan (Dublin Bay North, Social Democrats)
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57. To ask the Minister for Finance the corporate tax implications of the liquidation of a company (details supplied); and if he will make a statement on the matter. [4915/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, the tax affairs of identified individual taxpayers, including companies, cannot be disclosed due to the obligation to protect taxpayer confidentiality as provided for by section 851A of the Taxes Consolidation Act, 1997. It is an offence for a Revenue official to directly or indirectly disclose taxpayer information to third parties, including the Minister for Finance, unless this is specifically provided for in legislation. Therefore, neither Revenue nor I can comment on the tax affairs of any individual or company. However, I can assure the House that Ireland has a transparent tax code which is clearly set out in legislation.

Revenue advises me that a company in liquidation has ceased to be the beneficial owner of its own assets or liabilities. The liquidator holds the assets for the purpose of distributing them (or whatever remains of them) to the ultimate beneficial owners. Acts of the liquidator are deemed to be the acts of the company and transactions between the liquidator and the company are ignored. Any distributions of assets by the liquidator in the course of the winding up are subject to capital gains tax.

The appointment of a liquidator does not necessarily mean the cessation of a trade, although a cessation of trading will often occur at that point. Whether or not the trade has ceased is a matter of fact. If the trade has ceased, the general cessation rules apply. If the trade has not ceased, the company remains chargeable to corporation tax on its profits. Also, to the extent that any trading losses arise in the final 12 months prior to the cessation of the trade, they may be set-off against any trading profits arising from that trade in the three years prior to that 12 month period.