new delhi, Feb. 28 -- The taxman will defer to secured creditors such as banks while sharing the proceeds of a bankruptcy rescue, two people aware of the government's plans said.
The Centre will amend the Insolvency and Bankruptcy Code (IBC) to unambiguously state that tax authorities will be below secured creditors having a charge on the assets of a corporate borrower in hierarchy while distributing the proceeds, the people cited above said on condition of anonymity.
This is a key proposal in the amendments to the IBC that the ministry of corporate affairs has prepared in consultation with the sector's rule maker Insolvency and Bankruptcy Board of India (IBBI).
The amendments will be presented in the Parliament after the national polls ...