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

Explain the main elements of a contract administration plan, QUESTION 1 ...

QUESTION 1 (a) Briefly explain 4 functions involved in ensuring compliance with contract requirements (b) Explain how changes regarding variations and price adjustments are

Determine the levels of policy perspective, Determine the levels of Policy ...

Determine the levels of Policy perspective Policy perspective, analysis can be made on three levels, state-system level, the nation-state level and the decision making level. T

Describe the principal-agent framework, Describe the principal-agent framew...

Describe the principal-agent framework In standard principal-agent framework an agent may be directed to maximize an objective function which may or may not be different from

What is the meaning of redundancy, Question 1: (a) What do you meant by...

Question 1: (a) What do you meant by the term misconduct in employment law. How does the English definition of misconduct differ from the French definition of misconduct? (b

Function of the court, Function of the Court: In Scottish Insurance Co...

Function of the Court: In Scottish Insurance Corporation Ltd v. Wilsons & Clyde Coal Co. Lord Simmons stated: "But important though its task is to see that the procedure by

Powers of the attorney general, Powers of the Attorney General Whereas...

Powers of the Attorney General Whereas under sec 26(3) the Attorney General is empowered for as; Undertake and Institute criminal proceedings against any person b

Continuing guarantees – negotiable instrument, Continuing Guarantees – Nego...

Continuing Guarantees – Negotiable Instrument A continuing guarantee is such type of a guarantee that extends to a series of transactions, so and such is not exhausted through

Special interest groups and policy decision, Special interest groups and po...

Special interest groups and policy decision Special Interest Groups, either of voters or the prospective contesters, play an important role in policy process, especially under

Application of the unwritten sources, APPLICATION OF THE UNWRITTEN SOURCES ...

APPLICATION OF THE UNWRITTEN SOURCES OF ENGLAND LAW: Conversely it is a rule of England Law that unwritten laws are to be applied subject to the provisions' that any applicabl

Demonstrate of mintzbergs roles of management, Question: Joe is the reg...

Question: Joe is the regional manager of a multinational company operating in your country. This business manufactures toys for children and sells them in several other countri

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