Struck-off company has no status; objection rights can not be assigned

Summary

A struck-off company has no status to continue its objection. The company could not assign its objection rights (even prior to the strike-off) as these were personal to the tax payer objecting.

Facts

This is a Russell template-related matter.

The tax payer company entered into the Russell template. After investigation the tax payer was re-assessed on what is called "Track A" in 1990 and consequently the former shareholders were assessed on "Track B" in 1994. The tax payer objected and eventually a case was stated to the TRA.

However between the objections and the case stated the tax payer company was struck off the Companies Register and ceased to exist. Six weeks prior to this occurring, the tax payer company purported to assign its objection rights to Mr Russell.

Decision

The Authority followed its earlier decisions in the following cases: Case W5, Case W6 and Case W13 to conclude that once the company was struck off it was incapable of pursuing its objection.

As to the effectiveness of assigning the objection rights, the Authority noted that unlike Case W13 (where a similar assignment purported to occur) in this case the assignment was prior to the striking off of the company. However the Authority considered that the deed was ineffective to assign the rights for the same reasons in Case W13. (The only person who has the right to object to an assessment and to require that the objection be heard and determined by the TRA is the person who has been assessed for income tax. The objection procedure is personal to the tax payer. The tax payer's rights or obligations cannot be assigned under the revenue legislation).