Overview Of How HMRC Can Appoint A Liquidator To Investigate
How Can HMRC Appoint A Liquidator To Investigate? There are two ways in which this arises and it takes place after a winding up order is made or at a creditors meeting in Creditors Voluntary Liquidations / Compulsory Liquidations.
This is not a particularly routine event. In most cases, HMRC does not initiate the appointment of the Insolvency Practitioner and is content to leave the case with the Official Receiver or in a Voluntary Liquidation does not vote and lets other creditors initiate the appointment of the Liquidator.
Compulsory Liquidation
An appointment can arise in a Compulsory Liquidation if HMRC as a creditor asks the Official Receiver to appoint a Liquidator via referral to the Secretary of State under Section 137 of the Insolvency Act 1986.
Alternatively, there could be a Meeting of Creditors / Decision Procedure at which HMRC votes for the appointment of an Insolvency Practitioner to be the Liquidator.
Creditors Voluntary Liquidation
In a Creditors Voluntary Liquidation there could be a Meeting of Creditors / Decision Procedure at which HMRC votes for the appointment of a Liquidator.
When HMRC Appoints A Liquidator To Investigate
HMRC will appoint a Liquidator typically is they have concerns about a potential loss of tax to the crown and or when there are material compliance issues.
