- 3 Marks
AT – May 2021 – L3 – Q2b – Mergers, Amalgamation, and Reorganisation
Explain the tax implications of transferring Tanko Ltd to Agoo Ltd as a going concern.
Question
Tanko Ltd has been involved in tree cropping for some time now. Over the last four years, the business has boomed, and its fruits are sold before they are even harvested. Tanko Ltd intends to transfer the entity to Agoo Ltd as a going concern.
Required:
Explain the tax implication of the transfer of Tanko Ltd to Agoo Ltd.
Find Related Questions by Tags, levels, etc.
- Tags: Business Transfer, Going Concern, Tax implications
- Level: Level 3
- Topic: Mergers, amalgamation, and reorganization
- Series: MAY 2021
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