"You may be able to realise a capital loss on worthless shares before a company is dissolved if a liquidator or administrator declares in writing that there is no likelihood you will receive any further distribution in the course of winding up a company."
Sounds like SH's can write off capital loss for tax purposes only if the liquidator makes a declaration in writing that the shares have no worth/value. Seems like the tax system is asking for the liquidator to state the obvious given that liquidation very rarely sees any money make it back to ordinary SH's, but does this declaration usually get made in the wind up process or are ordinary SH's left out in the cold - getting neither any money back or receiving a declaration they can use to write the loss off?
Interesting stuff.
SAS Price at posting:
2.8¢ Sentiment: None Disclosure: Not Held
