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

Legal personality and natural persons, Legal Personality and Natural Person...

Legal Personality and Natural Persons Legal Personality Therefore from a legal point of view there a person is anything that the laws of a particular country recognize

Describe the separate streams of problems and policies, Describe the Separa...

Describe the Separate streams of problems and policies The separate streams of problems, policies, and politics each have lives of their own. Problems are recognized an

Explain issue of non-state actors, ISSUE OF NON-STATE ACTORS The concep...

ISSUE OF NON-STATE ACTORS The concept of Non-state actor is a recent political development, which has, so far, eluded a concise definition. There are no treaties or conventions

Legal rights - winding up, Legal rights - Winding up: In substance the...

Legal rights - Winding up: In substance these two people are really partners" and by analogy with the law of partnership (which permits dissolution if the partners are really

Accounts and audit, ACCOUNTS AND AUDIT: By s.147(1) every company shal...

ACCOUNTS AND AUDIT: By s.147(1) every company shall cause to be kept in the English language "proper books of account" with respect to - (a) all sums of money received and

Purchase of own shares - merger accounting, Purchase Of Own Shares: An...

Purchase Of Own Shares: Another possible way in which a company's paid-up capital may leave the company other than in the ordinary course of the company's business would be if

Show the cross agency actions, Q. Show the Cross agency actions ? As al...

Q. Show the Cross agency actions ? As already described, the ASIC, ATO and FWO all have responsibilities in investigating and monitoring elements of phoenix activity. This mean

High court - establishment and composition, High Court - Establishment and ...

High Court - Establishment and Composition Establishment Further the High Court is established through S.60 (1) of the Constitution that states which 'there shall be a

Constructive notice - registered office, Doctrine of "Constructive Notice":...

Doctrine of "Constructive Notice":  The doctrine of "constructive notice" is a rule of company law to the effect that a person transacting business with a company is taken to

What is the meaning of inertia of expectation, What is the meaning of Inert...

What is the meaning of Inertia of Expectation We now move a bit away from the political economy of policy process to look into the inherent currents responsible for inaction an

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