LAM17200 | Transfers from a registered friendly society to an incorporated friendly society: FA12/S170

When a registered friendly society incorporates, assets and liabilities may be identified that are not to be transferred to the incorporated society but continue to be held by the trustees of the registered society. However, FA12/S170(2) provides that any tax liability of the non-transferred business becomes part of the tax liability of the incorporated society.

FA12/S170(3) allows the incorporated society to reclaim any tax paid on behalf of the registered society from the registered society’s trustees.