Preferential debts, Business Law and Ethics

PREFERENTIAL DEBTS:

These unsecured debts which rank ahead of a floating charge and non-preferential debts are:

(a) one year's taxes, i.e. corporation tax, PAYE income tax deducted, rates, VAT unpaid at the "relevant date". The relevant date is defined as:

i. the date of the order for compulsory liquidation (or any earlier order for appointment of a provisional liquidator); or

ii. the date of passing the resolution to wind up voluntarily.

If more than one year's tax is outstanding the Income Tax Department may select whichever year yields the largest amount of corporation tax; in other cases it is the latest year's tax which is a preferential debt;

(b) wages and salary of an employee, i.e. clerk, servant, workman or labourer (including commission or piece work payments) of the four months up to the relevant date limited to a maximum of four thousand shillings owed to each individual employee, accrued holiday pay and employer's National Social Security Fund (NSSF) contributions. A director is not an employee in respect of a claim for unpaid fees - but he may be in respect of salary if he has a contract of service.

Posted Date: 1/15/2013 5:26:30 AM | Location : United States







Related Discussions:- Preferential debts, Assignment Help, Ask Question on Preferential debts, Get Answer, Expert's Help, Preferential debts Discussions

Write discussion on Preferential debts
Your posts are moderated
Related Questions
QUESTION 1 What are the duties of an Occupational, Safety and Health officer in an organization? QUESTION 2 Section 47 (1) of the Occupational, Safety and Health Act st

Loans - Void Contracts However all loans made for an infant are void and irrevocable.  Since in Leslie Ltd. v. Sheill the infant defendant had obtained two advances of two hun

Role of the Courts The role of the court system in Canada varies. Due to the numerous jurisdictions and different government levels involved, the courts are often asked to inte

UNCTOC gives the right of Confiscation and Seizure to individual states. " 1. States Parties shall adopt, to the greatest extent possible within their domestic legal systems,

QUESTION 1 Discuss the sources of the Mauritian law QUESTION 2 (a) Tom, Pim and Pam enter into a lease agreement. The agreement has already been signed by Pim and Pam.

Question 1 "CSR can play a key role in contributing to sustainable development while enhancing Europe's innovative potential and competitiveness" Critically analyse the link be

David wants to open a restaurant in Melbourne. He engages Robert Boyd Pty Ltd, an architectural firm, to design the restaurant interior and exterior including the layout and positi

Ratio Decidendi Conversely "ratio decidendi" of a case consists of the material facts of such case and the decision made through the judge on the basis of those facts.  So hen

DISADVANTAGES: Whether delegated or subsidiary legislation has been criticised just to a variety of reasons, the main ones being that it is:as; (a)   Less democratic Whe

Formation of Contract - Law of Contract However a legally binding agreement prepared between two or persons or more parties.  Whereas it has also been explained as a promise o