No. 7/2018
[NSOLVDJCY
Cap. 6:07
(6) For the purposes of this section(a)
"salary and wages .. includes all cash earnings which the employee is
entitled to receive from the employer, but excludes other benefits;
(7) The Minister may by notice in the Gazette exclude from the operation of
this section a category of employees, schemes or funds specified in the notice by reason
of the fact that there exists another type of guarantee which affords the employees,
schemes or funds protection which is equivalent to the protection provided by this
section.
(8) A director of a liquidated company, or a member of a private business
corporation, employed by the company is not entitled to payment in terms of this section.
(9) In the third place any balance of the free residue must be applied to pay
maintenance due by a natural person debtor in terms of a Court order and which is in
arrear at the date of liquidation of the estate, for a period not exceeding three months
subject to the maximum amount of $750.
( l 0) The Minister may amend the amount mentioned in paragraph (a) by notice
in the Gazette.
(I 1) In the fourth place any balance of the free residue must be applied to pay
simple interest from the date of liquidation to the date of payment on the claims paid
in terms of subsections (1) to (9) in their order of preference at the rate of interest
prescribed in terms of the Prescribed Rate of Interest Act [Chapter 8: 10].
(12) In the fifth place any balance of the free residue may be applied to pay(a)
any tax due from the insolvent in respect of any period prior to the date
of liquidation of his or her estate, whether or not that tax has become due
and payable after that date; and
(b)
in the case of an insolvent partnership, so much of any tax referred to in
paragraph (i) due and payable by any partner as is referable to the taxable
income derived by him or her from the partnership, the amount so referable
being deemed to be a sum which bears to the total amount due by him
or her as the aforesaid tax the same ratio as his or her taxable income
derived from the partnership bears to his or her total taxable income from
all sources; and
(c)
any amount due from the insolvent in terms of the Capital Gains Tax Act
[Chapter 23:01], in respect of any capital gain received by or accrued to
or in favour of the insolvent prior to the date of liquidation of his or her
estate, whether or not that amount has become due and payable after that
date;
(d)
any amount due from the insolvent in terms of the Value Added Tax Act
[Chapter 23:08], in respect of any transaction made within the period of
18 months immediately preceding the date of the liquidation of his or her
estate, whether or not that amount has become due and payable after that
date;
(e)
in paragraph (a) "tax .. means any tax payable under the Income Tax Act
[Chapter 23 :06], other than any additional amounts of tax payable under
section 46 of that Act.
( 13) The claims referred to in subsection (12)(a) to (c) rank equally and abate
in equal proportions, if necessary.
(I 4) In the sixth place the balance of the free residue must be applied to pay(a) which constitutes the proceeds of any crop any statutory charges, with
interest thereon calculated in the manner provided in section 113(2),
relating to such crop or its proceeds:
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