SCHEDULES
SCHEDULE 7 Administration, Collection and Enforcement
Priority of tax in bankruptcy, winding up, etc.
F212
1
There shall be included among the debts which—
a
under section 33 of the M1Bankruptcy Act 1914 are to be paid in priority to all other debts in the distribution of the property of a bankrupt or person dying insolvent; or
b
c
F3the amount of any tax due at the relevant date from the bankrupt, debtor, person dying or company and having become due within the 12 months next before that date.
2
In this paragraph “the relevant date”—
a
in relation to section 33 of the Act of 1914, means the date of the receiving order or of the death, as the case may be;
b
in relation to section 118 of the Act of 1913, means the date mentioned in subsection (4) of that section;
c
in relation to section 319 of the Act of 1948, has the meaning assigned to it by that section, and in relation to section 94 of the Act of 1948, means the date of the appointment of the receiver or taking of possession.
3
For the purposes of sub-paragraph (1) above, the tax having become due within the 12 months mentioned in that sub-paragraph in respect of any prescribed accounting period falling partly within and partly outside those 12 months shall be taken to be such part of the tax due for the whole of that accounting period as is proportionate to that part of that period falling within those 12 months.
4
In this paragraph the reference to tax due at the relevant date is a reference to tax which is then unpaid (whether payable before or after that date); and references to tax which has become due within the 12 months next before that date are references to tax (whether payable before or after that date) which is attributable to any prescribed accounting period falling—
a
wholly within those 12 months; or
b
subject to apportionment in accordance with sub-paragraph (3) above, partly within and partly outside those 12 months,
including such tax assessed (whether before or after that date) under paragraph 4 above.