Why Do Insolvency practitioners Not Handle Tax properly?

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  • BusNavig8
    Email problem

    • Feb 2012
    • 138

    #1

    Why Do Insolvency practitioners Not Handle Tax properly?

    Insolvency practitioners and Tax Numbers - Not good friends.

    They are supposed to apply for another tax number for the insolvent estate but they dont.

    Any tax refund prior to the date of the final order of sequestration is NOT the estate's money is it the individual money as it represents an overpayment of income tax.

    As far as I am concerned if the insolvency practitioner does not apply for a separate number then the individual can continue to obtain his refunds ad infinitum.

    Sorry the "No" in the thread is supposed to be "Not" - finger problem!
  • Dave A
    Site Caretaker

    • May 2006
    • 22803

    #2
    Originally posted by BusNavig8
    Any tax refund prior to the date of the final order of sequestration is NOT the estate's money is it the individual money as it represents an overpayment of income tax.
    It's not the equivalent of an attachable asset?

    Providing the insolvent with a new tax number after the final order makes sense to me. What am I missing?

    Originally posted by BusNavig8
    Sorry the "No" in the thread is supposed to be "Not" - finger problem!
    Fixed.
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    • BusNavig8
      Email problem

      • Feb 2012
      • 138

      #3
      Prior to the date of Insolvency, its not an attachable asset, as the date of accrual is prior to the event. After the date of Insolvency, it is an attachable asset. But then "contribution " is usually an issue in most estates in any event!!

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