Should tax claims be granted some priority in a business rescue: an analysis through the framework of the values and policy underpinning corporate re-organisation

Insolvency systems are fundamental to the functioning of commercial activity. They are essential for the development of credit markets and entrepreneurship, and raise the efficiency level of economies. South Africa’s business rescue regime is an innovative component of its insolvency system because it encompasses more than creditors’ commercial interests; it aims to ensure the equitable treatment of multiple stakeholders such that social, economic and political interests are recognised and optimised as appropriate. However, equitable treatment does not equate to equal treatment. Business rescue organises the claims of stakeholders into a hierarchy. The ranking of tax claims within this hierarchy is controversial because various, divergent social, economic and political interests are implicated by a tax claim against an ailing corporation. This dissertation will assess whether tax claims should be granted some priority in South Africa’s business rescue claims hierarchy. The assessment of the different policy arguments for and against this priority will take place through the lens of corporate reorganisation’s values and policy. This is crucial so that the conclusion is consistent with corporate reorganisation’s objectives rather than being influenced by bias in favour of social or commercial interests.

Grantor

Department of Commercial Law

Year dc:date.issued

2019

Author dc:creator

• Radford, Olivia Jordan

Advisor dc:contributor.advisor

• Bradstreet, Richard

• Commercial Law

Handle dc:identifier.uri

http://hdl.handle.net/11427/30866

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/30866