Commentary

D6.701 Scope of insolvencies and administrations

Corporate tax
Corporate tax | Commentary

D6.701 Scope of insolvencies and administrations

Corporate tax | Commentary

Division D6.7     Insolvencies and administrations

Insolvencies and administrations—scope

D6.701 Scope of insolvencies and administrations

As this Division is written for tax practitioners, it is useful for them to be reminded of the definitions. An 'insolvency' arises if a company does not have sufficient assets to cover its liabilities if it can't pay its debts when they fall due.

A company which is insolvent requires the expertise of an insolvency practitioner, which includes administrators, receivers and liquidators. Furthermore the term insolvency covers sequestration, liquidation, administrative receivership and receivership; in these situations the primary aim will be to achieve the maximum realisation

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