The following creditors have proved claims against Sarah's insolvent estate: SARS a claim of R120 000 (One
Question:
The following creditors have proved claims against Sarah's insolvent estate: SARS a claim of R120 000 (One hundred and twenty thousand rand) for income tax before sequestration; Best Funerals a claim of R6 000 (Six thousand rand) for death bed expenses of Sarah's wife who passed away one month before sequestration of her estate; her employee Sam had a claim of R40 000.00 (Forty thousand rand) for four month's salary for the period before sequestration, and sheriff's charges for a claim of R1 200.00 (One thousand two hundred rand) for making an inventory of the estate assets after sequestration.
Q.3.1 Identify the preferment creditors in the scenario above.
(5)
Q3.2 | With reference to the set of facts, explain the order in which the free residue of the estate will be paid to the creditors in the scenario.
| (10) |
Q3.3 | Sarah is concerned that she will remain insolvent indefinitely. Advise Sarah of the legal position in this respect. |
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill