42Recovery of tax

1. Tax payable by any person shall be recoverable as a debt due to the Crown.

2. Where a person has not paid the amount of the tax payable or any part thereof in the manner required by Part 3, the amount of the tax for the time being unpaid to the Commissioner shall, in the application of the assets of the person, rank as follows:

3. where the person is an individual, whether or not a member of an unincorporated body, upon that person's bankruptcy or upon that person making an assignment for the benefit of that person's creditors, the amount of the tax payable shall rank without limitation in amount, in order of priority immediately after preferential claims for wages or other sums payable to or on account of any servant or worker or apprentice or articled clerk, and in priority to all other claims:
4. where the person is a company, upon the liquidation of the company, the amount of the tax payable shall have the ranking provided for in Schedule 7 of the Companies Act 1993 (whether or not the company has been incorporated or registered under that Act):
5. where the person is a company, upon the appointment of a receiver on behalf of the holder of any debenture given by the company secured by a charge over any property of the company or upon possession being taken on behalf of the debenture holder of the property, the amount of the tax payable shall have the ranking provided for in Schedule 7 of the Companies Act 1993 (whether or not the company has been incorporated or registered under that Act), as if the receiver or person taking possession were a liquidator:
6. if a person is an unincorporated body, on the appointment of a receiver on behalf of any person, the amount of tax payable—
   1. ranks immediately after any preferential claims for any wages or other sums payable to or on account of any servant, worker, apprentice, or articled clerk; and
   2. ranks in priority over any claims of any person under a security interest to the extent that the security interest—
      1. is over all or any part of the unincorporated body's accounts receivable and inventory or all or any part of either of them; and
      2. is not a purchase money security interest that has been perfected at the time specified in section 74 of the Personal Property Securities Act 1999; and
      3. is not a security interest that has been perfected under the Personal Property Securities Act 1999 at the time of the receiver’s appointment and that arises from the transfer of an account receivable for which new value is provided by the transferee for the acquisition of that account receivable (whether or not the transfer of the account receivable secures payment or performance of an obligation); and
   3. must be paid accordingly out of any accounts receivable and inventory that are subject to the security interest (or their proceeds).

7. This section shall apply notwithstanding anything in any other Act.

8. In subsection (2)(c), the terms account receivable, inventory, new value, proceeds, purchase money security interest, and security interest have the same meanings as in the Personal Property Securities Act 1999.

9. The provisions of this section, as in force immediately before the commencement of the Personal Property Securities Act 1999, continue to apply in respect of a person that is a body or an unincorporated body whose property was subject to a floating charge that, before the commencement of that Act, became a fixed or specific charge.