An integrated subsidiary in a court-ordered liquidation but whose activity continues until the completion of the liquidation does not leave the group simply because it failed to report its results.
Confirming a 1987 solution, the Council of State considers that a company placed in a court-ordered liquidation shall not file the termination statement before the final accounts are approved by the liquidator as provided by law (EC 11-2 -1987 No. 41157).
Therefore, the company is not under the obligation to close the current financial year on the effective date of liquidation neither to establish at this date the tax returns relating to this exercise.
However, as a result of the provisions combined in Articles 223 A and 223 S of the General Tax Code, it is solved that the lack of awareness from an enterprise member of a consolidated tax group of the obligation to declare their results, constitute a criminal offense and of interest in which the parent company bears the consequences but does not involve the group´s exit from the committed company.
Consequently, a subsidiary declared in court-ordered liquidation but whose activity continues until the termination of the liquidation process does not leave the group simply because it failed to report its results.
Note that in the same case but about the responsibility of the liquidator, the Supreme Court held that the tax termination of an integrated society place on the date of its coming into liquidation, provided that no extension of activity was allowed. According to the Court, this is the event that triggers the requirement to file the declaration of cessation of activity (Cass. Com. 26-1-2010 No. 08-12186).