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24
May
  • Posted By : Administrative
  • Category: General Tax Topic
  • Comments: 0

WHAT ARE THE REQUIREMENTS FOR INDEMNITY REQUESTS?

In relation to the expenditure of public money, there are some strict legal and policy obligations imposed on government agencies. Therefore, all indemnity requests from insolvency practitioners must comply with a minimum standard in order to be considered.
The standard requirements are as follows:

  •  All requests should be in written form and accompanied by the Debt insolvency cover sheet;
  •  Requests must be for the sole purpose of seeking an indemnity, rather than included as one of numerous items contained in lengthy reports or circulars to creditors;
  • The first page of the indemnity request must be clearly marked as 'Indemnity request' because the ATO needs to ensure that indemnity requests are referred to the correct team for taking action;
  • Part 1 and Part 2 (if required) of indemnity checklist must be fully addressed in the request. The request must also be accompanied by the completed detail annexure A document.
  • You need to refer to and comply with Practice Statement Law Administration PS LA 2011/16 at the time when you prepare an indemnity request.
  • Before an action is commenced and before committing to the use of particular solicitors, legal counsel or other experts, all indemnity requests have to be made except in the cases of exceptional circumstances. This is very important for the Deputy Commissioner of Taxation (DCT) as they need to provide input regarding the solicitors, legal counsel and any other experts to be used and the rates proposed.

Indemnity request will not be treated as a genuine request and will not receive a response unless it complies with the above minimum standards.


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