Depending on the form(proposal, receivership or bankruptcy), the claims of certain creditors
including landlords and certain government agencies may have different priorities. In a
bankruptcy, all government claims except for employee tax deductions are unsecured claims and
rank pro rata with ordinary suppliers. The order of priority may be altered in a straight
receivership situation. It is important to seek appropriate professional advice in order to
determine the exact status in each individual case. In all situations, employee tax deductions
owing are paid in full before other creditors receive any money. Where there are outstanding
remittances of employee tax deductions in a Proposal, these must be paid in full within six
months of acceptance of the Proposal by creditors and approval of the Court.
