There are many taxation questions which should be considered when a company in difficulty attempts restructuring, or an insolvent company is wound up or is placed under voluntary administration or some other form of external administration.
Tax & Insolvency contains practical solutions for tax and legal practitioners and addresses many of their questions, including:
- What is the scope and effect of the Commissioner’s power to have unremitted group tax and other existing tax liabilities collected on the basis of estimates?
- What is the effect of the service of a “garnishee” notice by the Commissioner on a person who owes or may later owe money to an insolvent company, or on any other person who holds money payable to the company?
- What recovery action may be taken by the Commissioner?
- Does the company’s liability to pay tax alter when it enters into voluntary administration or when a liquidator, scheme manager or receiver is appointed?
- When can liquidators or receivers incur personal liability for failing to satisfy their obligations under the tax laws?
- When are the officers and managers (including liquidators and receivers) of the company exposed to both criminal and personal liability in relation to the tax liabilities and other debts of the company?
The updated online version of this concise guide to the tax implications of insolvency is available now.
Andrew Sommer is a partner of the national law firm, Clayton Utz, Lawyers, Sydney. He has expert knowledge in the area of indirect taxation and specialises in the legal issues surrounding the operation of GST.
Robyn Schofield is a partner of the national law firm, Clayton Utz, Lawyers, Sydney. She specialises in a range of tax-related matters for corporations.
Stephen Gates was partner of the national law firm, Clayton Utz, Lawyers, Sydney and was the original of this work. His valuable contribution to the 1st and 2nd editions of Tax & Insolvency are gratefully acknowledged.