Following the recent decisions of the High Court, liquidators should note that there will be a change in the procedures for establishing the amount of Court duty on annual cash accounts.
The Court considered in some detail the meaning of 'realisation' for the purposes of the relevant fees order. A variety of items were excluded from charge, notably deposit interest on monies lodged, but dividends from associated companies also in liquidation are chargeable to duty.
In future, in any case where an annual account shows receipts of more than £100,000, the liquidator will be invited to state in writing how much of those claims are not liable to duty. The Examiner must then deliver the account and the liquidator's claims to the Revenue to allow them the opportunity to dispute the liquidator's contentions. Unless agreement is reached, the Court, and not the Examiner, must decide on the matter.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
