Preferential debts, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Preferential debts

Examine the features of the main sources of law in mauritius, QUESTION 1 ...

QUESTION 1 Arbitration has proved itself to be a valuable scheme in alternative dispute resolution of conflicts. Discuss the advantages and disadvantages of Arbitration as a su

Explain the universal declaration on human rights, Explain the Universal De...

Explain the Universal Declaration on Human Rights Universal Declaration on Human Rights was passed by UNGA, entailing a comprehensive and detailed concept pertaining to rights

Special courts, Special Courts However in addition to the courts dealt...

Special Courts However in addition to the courts dealt into paragraphs as 2.1 - 2.7 above, there exist in England a number of other institutions that are called "courts" or "t

Treaty on principles governing the activities of states, Treaty on Principl...

Treaty on Principles governing the activities of States The Treaty on Principles governing the activities of States in the Exploration and Use of Outer space, including the mo

Relate the military and economic power with each other, Relate the military...

Relate the military and economic power with each other The balance of military and economic power of equilibrium is therefore desirable. A balance of power is a pre-requisite f

Commencement, COMMENCEMENT: However section 46(4) of the constitution ...

COMMENCEMENT: However section 46(4) of the constitution offers that like, a law made through Parliament shall not come in operation whether it has been published in the Englan

How much damages should be awarded, X Co. is a retail dealer of garden trac...

X Co. is a retail dealer of garden tractors. Mr. Y signs a contract to buy a garden tractor for $400 but later backs out of the agreement. The tractor that Y agreed to buy is subse

Types of contract - law of contract, Types of Contract - Law of Contrac...

Types of Contract - Law of Contract However common law of US relating to the contract classifies contracts with the following categories as; Specialty Contra

Auditors, Auditors: APPOINTMENT:           S.159 (1) provides tha...

Auditors: APPOINTMENT:           S.159 (1) provides that "every company shall at each annual general meeting appoint an auditor or auditors to hold office from the above

Business Law and Ethics, A Black Firefighter alleges that each time he is t...

A Black Firefighter alleges that each time he is transferred from one fire station to another, he must take his bed with him, on orders of the fire chief. The chief defends on the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd