A provisional amount for income tax that has not yet been assessed does not constitute a debt 'due and payable' for the purposes of cash flow insolvency testing under s 588FC of the Corporations Act 2001 (Cth). Income tax for a financial year does not become due and payable until 21 days after a notice of assessment is given. Similarly, amounts described as 'due in the following month' cannot be treated as debts due and payable at the current date. Liquidators relying on solvency tables to establish insolvency must ensure that only amounts actually due and payable at the relevant date are included.
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