Insolvency Act.pdf - Intax Info

shall, unless the contrary is proved, be deemed to have been otherwise than in the
ordinary course of business;
(iii) if it appears by reference to any book or document relating to the business, property or
affairs of the insolvent, or debtor who has assigned his estate, or if it is proved in any
other manner whatsoever that, in the assets found in the estate by the trustee or
assignee, there is a general deficiency not clearly and fully accounted for, of one-tenth
or more of the total value of assets so found in the estate, such insolvent or debtor
shall be deemed to have removed or made a disposition of assets to the value of such
deficiency in contravention of paragraph (d) unless he fully and accurately accounts for
or explains the deficiency and satisfies the court that the deficiency was not caused by
his action and that he could not have prevented it.
138. Concealment of liabilities or pretence to existence of assets
A person shall be guilty of an offence and liable to imprisonment for a term not
exceeding three years if, within two years immediately preceding the sequestration or
assignment of his estate, when making any statement either verbally or in writing in regard to
his business, property or affairs to any person who is a creditor or to any person who has
become his creditor on the faith of such a statement he conceals any liability present or future,
certain or contingent, which he may then have contracted, or fails to disclose the full extent of
his liability, or mentions, as if it were an asset, any right or property which at the time is not an
asset, or represents that he has more assets than he in fact has, or makes any false statement
in regard to the amount, quality or value of his assets, or in any way conceals or disguises or
attempts to conceal or disguise any loss which he has sustained, or gives any incorrect amount
thereof, unless he satisfies the court that he had no intent to defraud.
139. Failure to keep proper records
(1) A person shall be guilty of an offence and liable to imprisonment for a term not
exceeding one year if, being an insolvent or having assigned his estate, and his occupation or
transactions having been such that he might reasonably be expected to keep a record of his
transactions, he has failed to keep a proper record of his transactions in the English language.
(2) For the purposes of this section a proper record of transactions includes all such
books containing entries which set forth clearly the nature of all such person's transactions as
(regard being had to his occupation) he can reasonably be expected to have kept.
(3) A trader shall not be deemed to have kept a proper record unless it includes-
(a) detailed stock-sheets and balance-sheets completed for each of his three financial or
business years immediately preceding the sequestration or assignment of his estate or,
if he commenced business less than three years before the sequestration or
assignment of his estate, completed at the commencement of his business and
thereafter for each financial or business year preceding the sequestration or
assignment;
(b) books exhibiting for the period since the commencement of business or since the
commencement of the financial or business year next but one before the financial or
business year current with the sequestration or assignment (whichever period is the
less) the following particulars-
(i) all goods or property purchased in the course of the business duly supported by
the original invoices;
(ii)
(iii)
(iv)
all cash receipts and disbursements and the dates thereof;
a daily record of all goods or property sold on credit, and such a continuous record
of all transactions as a trader may be expected to keep in the ordinary course of
business; and
in addition to the other particulars usually contained in a ledger the name and
address of every person indebted to the trader at the time when he became so
indebted; and
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