REMIT BY THE ACCOUNTANT IN BANKRUPTCY IN THE SEQUESTRATION OF VCY AND & THE ADVOCATE GENERAL FOR SCOTLAND FOR AND ON BEHALF OF REVENUE AND CUSTOMS [2019] ScotSC 30 (04 April 2019)

REMIT BY THE ACCOUNTANT IN BANKRUPTCY IN THE SEQUESTRATION OF VCY AND & THE ADVOCATE GENERAL FOR SCOTLAND FOR AND ON BEHALF OF REVENUE AND CUSTOMS [2019] ScotSC 30 (04 April 2019)

The court held that HMRC's claim in the sequestration of VCY should be treated as an ordinary debt and not accorded preferential status, based on the interpretation of the relevant statutory provisions.

Citation
[2019] ScotSC 30
Parties
Remitter: Accountant in Bankruptcy; Sequestrated Debtor: VCY; Creditor/respondent: Advocate General for Scotland for and on behalf of the Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
Scotland
Judgment Date
04 April 2019
Procedural Posture
Remit in Sequestration Proceedings / Judgment
Outcome
HMRC's claim is to be ranked as an ordinary debt in the sequestration of VCY.
Legal Topics
Sequestration, Remit, Tax Debts, Priority of Claims
Insolvency Bankruptcy Sequestration Remit Tax Debts Priority of Claims

Case Brief

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Parties

Accountant in Bankruptcy

Remitter

VCY

Sequestrated Debtor

Advocate General for Scotland for and on behalf of the Commissioners for Her Majesty's Revenue and Customs

Creditor/respondent

Procedural Posture

Remit in Sequestration Proceedings / Judgment

Legal Issues

  1. 1 Whether HMRC's claim in sequestration ranks as an ordinary or preferential debt
  2. 2 Interpretation of statutory provisions governing ranking of debts in sequestration

Ratio Decidendi

The court held that HMRC's claim in the sequestration of VCY should be treated as an ordinary debt and not accorded preferential status, based on the interpretation of the relevant statutory provisions.

Court Disposition

HMRC's claim is to be ranked as an ordinary debt in the sequestration of VCY.

Orders

  • HMRC's claim is not to be treated as a preferential debt.
  • The Accountant in Bankruptcy is to proceed accordingly in the administration of the sequestration.