Income on the winding-up of an investment fund

(1) During the winding-up of an investment fund, distributions of a calendar year are deemed a tax-free return of capital to the extent that the last redemption price fixed in that calendar year falls below the continued acquisition cost. Decisive for the purposes of the first sentence, for grandfathered legacy units, is the notional acquisition cost under section 56(2), second and third sentences. In other respects the actual acquisition cost is decisive. The first sentence applies for a period of at most ten calendar years after the calendar year in which the winding-up begins.
(2) The beginning of the winding-up of a domestic investment fund is deemed to be the time at which the capital management company's right to manage the investment fund lapses. The beginning of the winding-up of a foreign investment fund is deemed to be the time at which the management body's right to manage the investment fund lapses, unless the legal representative of the foreign investment fund demonstrates a differing beginning of the winding-up.
(3) The acquisition cost of an investment unit is to be reduced by the distributions that, under subsection (1), do not form part of the income.