the seller's liabilities shall be considered extinguished

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Note added at 15 mins (2009-05-25 09:09:30 GMT)
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Monday 25 May 2009Home » Extinguished liabilities counted "at the leaving time" - Handbury



Extinguished liabilities counted "at the leaving time" - Handbury
The Federal Court (Kenny J) has held that liabilities of a subsidiary company were to be taken into account when the subsidiary left a consolidated group, notwithstanding the fact that the very act of "leaving" was caused by the issue of shares to the creditors (being persons other than the head company) in consideration of the extinguishment of the liabilities. In particular, the Court held that the phrase "at the leaving time" in s 711-45(1) ITAA 1997 meant "just before the leaving time". This resulted in the taxpayer deriving two large capital gains which would not otherwise have arisen: Handbury Holdings Pty Ltd v FCT [2008] FCA 1787 (Federal Court, Kenny J, 28 November 2008).

For a copy of the decision, go here.

http://www.taxinstitute.com.au/go/news/extinguished-liabilit...


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Note added at 19 mins (2009-05-25 09:13:28 GMT)
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Liabilities that are subordinated to claims of general creditors and were paid or extinguished during the reporting period.

http://www.metasphere.us/guides/us-gaap-ci/en_US/index.html#...

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Note added at 22 mins (2009-05-25 09:15:41 GMT)
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http://books.google.ro/books?id=iiBXDSq3cs8C&pg=PA132&lpg=PA...

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Note added at 23 mins (2009-05-25 09:16:43 GMT)
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Under the James Hardie (Civil Liability) Bill, civil liability of any kind that is incurred by the specified persons in
respect of any of the protected conduct is extinguished. This includes civil liability arising at general law, or by or
under any legislation. Under the James Hardie (Civil Penalty Compensation Release) Bill, liability to pay
compensation for loss or damage resulting from conduct that is capable of being the subject of a penalty order
of a civil nature, imposed by or under legislation, is extinguished.

http://www.parliament.nsw.gov.au/prod/parlment/nswbills.nsf/...$FILE/LC%2010605.pdf

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Note added at 28 mins (2009-05-25 09:22:02 GMT)
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Amend existing law to extinguish liability for inactive taxpayer accounts with a debt of less

http://www.ftb.ca.gov/law/legis/05proposals/lp_0524.pdf

On appeal, BWI argues it is entitled to judgment as a matter of law for two
reasons. First, BWI contends the Smiths' agreement with the Inn extinguished liability
and released the claims against BWI.....BWI argued its
vicarious liability was extinguished when the Smiths settled with its agent, the Inn......The statute most analogous to Nebraska’s appears to
-5-
be IOWA CODE § 668.7, which the Supreme Court of Iowa construed as not affecting
the common law rule that settlement with an agent extinguishes the vicarious liability
of a principal.

http://caselaw.lp.findlaw.com/data2/circs/8th/001820p.pdf

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Note added at 5 hrs (2009-05-25 14:02:34 GMT) Post-grading
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Multumesc frumos! :)