Tax liabilities in case of liquidation procedure


March 7, Fineko/ In accord with Article 79 of the Tax Code, tax liabilities of the liquidated company (enterprise, or organization) are fulfilled by the liquidation commission at the expense of its funds, including from income received from the sale of company’s property.

The liquidation commission is also obliged to fulfill the tax obligations of other structural units and permanent missions of the company. Obligations of a branch or other separate subdivision of a liquidated company should be fulfilled directly by the company, which includes a separate subdivision, and in case of liquidation of this company by the liquidation commission of this institution.

In case the funds of the liquidated company, including income from the sale of property carried out to fulfill tax obligations, is insufficient to fulfill its tax obligations in full, the remaining debt on tax obligations, in accordance with the law, must be paid by the participants, if these participants (founders) are jointly liable for the obligations of the company.
If the company is subject to bankruptcy, tax obligations are fulfilled in the order of priority established by law.