Legal framework for bankruptcy tax
In the normal situation, tax returns must be done by a person taxable under the tax inspector or withholding agent. This will almost always be the company. Because the company is usually represented by its directors where usually outside bankruptcy, declarations are provided by or on behalf of the board. But who does the tax for a business that has been liquidated?
Bankruptcy does not change the board. The directors remain in office. An important limitation is that only the liquidator has jurisdiction over the assets of the bankrupt company. The question is whether the taxes qualify as possessing the assets of the bankruptcy. The law does not apply here. However, Article 43 of the General Law on Taxes states that the powers and obligations of a bankruptcy may be exercised and fulfilled by their legal representative and by the receiver. Therefore it is essential to find a company with excellent experience in Bankruptcy laws such Essex Legal Experts (www.essexlegalexperts.co.uk/)
The answer to the question who is responsible for the tax associated with the bankruptcy is: the board or the liquidator. This is only different if the Tax Administration requires the trustee to provide the declaration. For bankruptcy solicitors in Chelmsford Essex, it is very important to look for one with over 10 years experience so that the trustee is fully aware of the laws. This request has not explicitly been made, it is sufficient if the tax authorities will send the declaration to the trustee by setting it in his name.
Let the trustee complete the tax return
From a practical perspective, it is useful to let the trustee complete the tax return for the period after the declaration of insolvency. He means to do so much more easily than a driver. For sales tax, the board will often not know what revenue was realized after the bankruptcy date. The curator of course does have that information. The receiver also can agree to ask the tax authorities with doing a one-off declaration of sales tax on the estate period at the end of the bankruptcy. For payroll taxes the employee agency is responsible for the declaration and payment of the period over which it took over the salary. Therefore the administration would need play no role. Regarding corporate tax that the liquidator is entitled to return the invitation to make a declaration to the tax authorities stating that the bankruptcy estate is low or no taxable events occurred. Only if there is money to meet corporate and / or there are taxable events, the trustee will have to proceed to make a declaration. In that case, there are often financial resources which will be able to outsource the declaration by an auditor.
Stay as directors involved in the tax return for the period for bankruptcy
For the period of bankruptcy, the trustee will often require the administration to arrange for the return. Regarding sales tax and payroll taxes for which it concerns to the return for a period in which the trustee was not involved and on which the government should have the information at their disposal. Corporate tax seems less appropriate to require that the board is responsible for the declaration. Doing corporation tax is a time-consuming and complicated task, while the receiver will usually suffice to set the option to return the declaration.