Section 42: Priority for VAT charged by a registered person
consolidated text (as at 2018, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
42. Priority for VAT charged by a registered person
(1) Notwithstanding any other enactment, VAT due and payable by a
registered person—
(a) shall be held on behalf of Government; and
(b) shall not be subject to attachment in respect of any debt or liability of the registered person.
(2) In the event of the liquidation or bankruptcy of the registered person,
the amount of tax due and payable by that person shall not form part of the
estate in liquidation or bankruptcy and shall be paid in full to the DirectorGeneral before any distribution of property is made.
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Questions this section answers
- If a VAT-registered business goes bankrupt, is the VAT it collected protected and paid to government first?