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05-Mar-2016 16:38

Witness the situation described in recent letter from the Internal Revenue Service (LTR 200806006, November 7, 2007), which addresses a seeming anomaly related to the tax code.The anomaly is corporate dissolution without liquidation.By default, the exchange rate specified for the product under which the LC is processed, will be displayed.I'm sorry I never made it to your party, after I went to taco bell my assets were liquidating all night.At issue is whether the company’s status as a corporation had been terminated by the administrative dissolution. Something else to consider is that under Section 336(a) of the tax code, a gain or loss is recognized by a liquidating corporation on the distribution of its property in complete liquidation, as if such property were sold to the distributee at its fair market value. 142 ) states that “…where a corporation ceases business operations, has retained no assets, has no income, and has actually liquidated, there is in effect a de facto dissolution, even though the corporation has not been formally dissolved…” In addition, it is entirely possible for the corporation to continue in existence even though it has been, as a matter of state law, dissolved.If it is considered terminated, the company would have been viewed as having completely liquidated, and both it and its shareholders would have experienced the tax consequences attendant to the situation. In other words, in most cases, the liquidation of a corporation commonly engenders two levels of taxation: tax will be imposed at both the corporate and distributee shareholder levels.* The De Facto Company Closure A complete liquidation is not always accompanied by a formal or legal company shutdown. Thus, unless dissolution brings about an automatic transfer of the corporation’s assets to its shareholders, the corporation, even though dissolved, continues its existence.

The debiting of the receivable account happens at the event for which the commission or charge has to be collected (issue of an LC, amendment of an LC, availment against an LC, etc.).

Once you enter the reference number of the LC in the Receivable Liquidation screen, the system automatically assigns a unique liquidation reference number to the component you are liquidating.

Besides this, the following details of the LC are picked up and displayed: If the component currency and the currency of the account to be debited for the liquidated amount are different, you can indicate the exchange rate to be used in the conversion.

Temporary Importations Under Bond (TIB) Extensions: TIB Extensions requested by Trade will automatically be accepted in ACE, but CBP will have the ability to deny an extension as necessary. Deem Liquidations: For entry summaries that are deem liquidated, they will display on the electronic bulletin as “deem liquidated” for the basis of liquidation.

If no action has been taken to extend or suspend, an entry summary will deem liquidate at 365 days.

Liquidations will process weekly, with entry summaries liquidating every Friday.



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