what happens to tax refunds once you have been made bankrupt. my client was made bankrupt in march 2010 and an insolventcy company took everything for the 2010 tax year. i have not heard anything since then and have now just submitted his 2011 return. the revenue are holding onto his refund, why?
I am self employed and still BR. The Inland Revenue will not deal with me direct until instructed to do so by my OR. This may be the same in your case.
OK Please make your client aware of where this information comes from and that it is neither your nor our proffesional opinion.
Ant money that becomes due to a bankrupt or devolves upon then during their bankruptcy prior to their discharge can be claimed as an after aquired asset in the bankruptcy and goes to the OR.
It may be that since a refund is due for the period of time during the bankruptcy then this will now be taken into the bankruptcy.
Is your client self employed, what is the source of the refund Payment on account etc
Yes he is self employed. He was made bankrupt on 13th March 2010, but was apparently released early from it.
The refund comes from CIS Tax deducted through 2011 tax year. He was also due a refund in the 2010 tax year however the of has all paper work and nothing has been declared to the tax office. What happens to that refund.
what happens to tax refunds once bankrupt ?
Posted - 31 May 2011 : 11:43:03
