Despite ‘Clean Slate’ Rule, Taxmen Pursue New Claims Against Insolvent Companies
Tax officers are sending new tax notices to companies that have already been taken over after going through the insolvency process. This goes against the “clean slate” rule in the Insolvency and Bankruptcy Code (IBC), which says that once a company is rescued, all its old debts and taxes should be cleared.
Even though courts have clearly said that no more old claims should be made, tax officers are still doing it. As a result, the new owners of these companies are getting stuck in legal trouble and having to go to court again, even though the law is supposed to protect them from this.
Numerous firms have suffered from new tax bills over pre-takeover…
