039 Taking over the deficit of dissolved subsidiaries
Tax Reform in 2010 has enabled parent companies to take over the deficit when wholly owned subsidiaries dissolved after October 1, 2010, and to make it tax-deductible from gross revenue as a carry-over of a deficit. The date of the dissolution of subsidiaries is the date when final residual properties of theirs become fixed, and the tax deduction becomes effective from the accounting year to which the following day of the fixation of the properties belongs.
However, instead of this reform, loss on cancellation of shares cannot be included in nontaxable expenses according to the 2010 reform.
