Title In case a taxpayer declares bankruptcy following a complete court case against her/him by KRA, what is the way forward?
Description

Bankruptcy proceedings are filed in the High Court and there is an elaborate process involved. The person seeking to be declared bankrupt must inform its creditors of the bankruptcy proceedings. The legal team would ensure that the KRA is listed as a creditor during the bankruptcy proceedings and further ensure that the tax owed is listed in priority to other creditors.


We have not had cases where a taxpayer moves to be declared bankrupt following a court case. However we have had instances of company’s being dissolved and for that we have the Insolvency Act to guide us. 
Category Tax Assessment