The Insolvency Act 1986 (HMRC Debts: Priority on Insolvency) Regulations 2020 will apply to all business insolvencies that commence on or after 1 December 2020. They provide for certain debts owed to HM Revenue & Customs (HMRC) to become preferential debts in the event of a business entering a formal insolvency. It is important that creditors understand whether they are affected by these changes so that they can decide whether they need to take steps to protect their position.
The relevant debts
What are the new provisions?
On 17 November 2020, Turkey enacted the Law on Restructuring of Certain Receivables and Amendment of Certain Laws No 7256, which allows the restructuring of certain public receivables and introduces several amendments to the tax legislation.
Bazı Alacakların Yeniden Yapılandırılması ile Bazı Kanunlarda Değişiklik Yapılması Hakkında Kanun (“Kanun”) 17 Kasım 2020 tarih ve 31307 sayılı Resmî Gazete’de yayımlandı.
Kanun’un 1. maddesinin 1. fıkrasında kanun hükümlerinin uygulanacağı çeşitli alacaklar, idari para cezaları ve vergi cezaları düzenlenmiştir. 2. fıkrada Kanun kapsamında vergi, gümrük vergileri, beyanname ve Yİ-ÜFE aylık değişim oranlarının tanımları verilmiştir.
In the wake of the recent economic downturn caused by the COVID-19 pandemic, there will likely be a sharp rise in bankruptcy filings by businesses seeking to obtain relief from the burdens of excessive debt.1 1 Winston & Strawn’s Tax Controversy and Litigation Group litigates tax disputes in the bankruptcy courts and works in conjunction with the firm’s Bankruptcy Practice Group. Portions of this article were originally published by the author in 2008.
In the wake of the recent economic downturn caused by the COVID-19 pandemic, there will likely be a sharp rise in bankruptcy filings by businesses seeking to obtain relief from the burdens of excessive debt.[1] The bankruptcy code is designed to provide debtors relief and protection from creditors, which includes the Internal Revenue Service (“IRS”).
TAX CONTROVERSY AND LITIGATION NEWSLETTER
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Focus on Tax Controversy
NOVEMBER 2020\\VOLUME 4\\ISSUE 3
IN THIS ISSUE
ARTICLES AND UPDATES Bankruptcy Court's Jurisdiction To Resolve Tax Claims2 FAQs Issued Under The CARES Act Invalid Under The APA8 Tax Court Concludes IRS Failed to Satisfy 675111
Penalty For Failure To File Form 5471 Is Not Divisible 14 Sixth Circuit Rejects Taxpayer's Judicial Estoppel Claim17
ABOUT US Winston & Strawn's Tax Controversy and Litigation Practice 20
Editors 20
The Law on Restructuring of Certain Receivables and Amendment of Certain Laws (“Law”) was published in the Official Gazette dated 17 November 2020 and numbered 31307.
Various receivables, administrative fines, and tax penalties which are subject to the provision of the Law are regulated in the 1st paragraph of article 1 of the Law. While in the 2nd paragraph, the definitions of taxes, customs duties, declaration, and D-PPI (Domestic-Producer Price Index) monthly rate of change are given within the scope of the Law.
In the wake of the recent economic downturn caused by the COVID-19 pandemic, there will likely be a sharp rise in bankruptcy filings by businesses seeking to obtain relief from the burdens of excessive debt.[1] The bankruptcy code is designed to provide debtors relief and protection from creditors, which includes the Internal Revenue Service (“IRS”). One of the benefits of bankruptcy court protection is the automatic stay, which will
Recent months have brought unprecedented challenges to businesses, with no sector immune to the economic repercussions of the pandemic. Yet despite headline news of certain high-profile restructurings and insolvencies, such as Virgin Atlantic, Debenhams, and Edinburgh Woollen Mill, it seems the emergency measures implemented by the UK Government have, to a degree, staved off wide spread economic collapse that may otherwise have been inevitable.