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

Group account form - accounts and audit, Group Accounts' form: S.151(...

Group Accounts' form: S.151(1) provides that the group accounts laid before a holding company shall be consolidated accounts comprising- (a)   like with a consolidated bala

Contract law problems, Case Study Cathy's septic tank at her house was ...

Case Study Cathy's septic tank at her house was old and it suddenly stopped  working.  On 9 June 2008 she called Dave, the owner of Septix Pty Ltd (-Septix?), to urgently give

Identify the ethical issues, Mr. Gomez a former managing partner of the Gra...

Mr. Gomez a former managing partner of the Grant Thornton accounting firm, is currently serving first half of a 12- year prison term. In 1986, 39 year old Gomez pleaded guilty t

State article 2 of air and outer space law, State Article 2 of air and oute...

State Article 2 of air and outer space law Article 2 states that for the purposes of this Convention the territory of a state shall be deemed to be the land areas and territori

State article 24 and 25 of air and outer space law, State Article 24 and 25...

State Article 24 and 25 of air and outer space law Article 24 states that the aircraft on a flight to, from, or across the territory of another contracting State shall be admit

Self-control in entrepreneurship development, Self-Control : Most entrepre...

Self-Control : Most entrepreneurs believe they can do the job better than anyone else and will strive for maximum responsibility and accountability. An entrepreneur needs to maint

Unwritten sources , UNWRITTEN SOURCES OF ENGLAND LAW: However common l...

UNWRITTEN SOURCES OF ENGLAND LAW: However common law may be illustrated as that branch of the law of England that was developed through the English courts on the basis of the

Question if business law, I am  Lauren Garcia, I have an order my assignmen...

I am  Lauren Garcia, I have an order my assignment, please answer me back here Describe what parts of business law are involved in the following scenario. What issues are invo

Determine the reasons of policy perspective, Determine the reasons of polic...

Determine the reasons of policy perspective The term system is needed for two reasons: i) It encompasses all sovereign states and therefore possesses the virtue of being com

Show the suggested actions to address phoenix activity, Q. Show the Suggest...

Q. Show the Suggested actions to address phoenix activity? There have been a range of options identified by previous works on phoenix activity, such as the Cole Inquiry and Tre

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