Have you ever considered the process of asset sale before or during liquidation? It is not as straightforward as you may have thought, so we have come up with a short list of issues to consider.
- Sale of assets at “market value”.
When any company assets are sold during liquidation, the liquidator will most likely need to obtain an independent valuation of those assets before going ahead and selling the assets. The reason is that the liquidator has a duty to sell assets at the market value or if a market does not exist then at the best price that can be reasonable obtained.
- Tax Implications
When company assets are sold during liquidation, the liquidator will still need to collect any GST on the sale and remit the GST to the Australian Taxation Office (ATO). If the asset has been sold at a profit then the liquidator, may also need to report the capital gain to the ATO and pay any tax.
- Depositing money from asset sales into the Company’s Bank Account.
All funds received from the sale of company assets during liquidation must be paid into a bank account controlled by the liquidator on behalf of the company. If a company director or another agent sells any assets of the company on behalf of the liquidator, then the funds still need to be paid into a bank account controlled by the liquidator. The Liquidator will then disperse the funds in accordance with the law.
This is a complex area of the law and that is why liquidators need to be qualified accountants and registered with the Australian Securities and Investments Commission. At Australian Company Liquidations we have our own in-house registered liquidators who can wind up your company and sell off any assets and comply with the laws. We have friendly and professional consultants ready to assist you now. Our phone lines are open 24/7 so there will always be someone available to speak to you at any given time, so please call us on 1800 003 883 now.