What are the requirements for a statutory demand?

The statutory demand must: relate to a debt or debts owed by the company to the creditor that are due and payable and total at least the prescribed amount, which will generally be $2000 [1]; require the company to pay the amount within the prescribed period (which will generally be 21 days) [2] after the demand is served;

How are Statutory demands used by the ATO?

Statutory demands Service of a statutory demand is one of several avenues available to the ATO where a corporate taxpayer does not pay their tax. A statutory demand is a formal, written demand from a creditor, issued under the Corporations Act 2001 (Cth) that requires a company to pay a debt. The statutory demand must:

Can a court extend the expiry date of a statutory demand?

The Court has no jurisdiction to extend time before or after the expiry of the 21 day period pursuant to section 1322(4)(d): David Grant & Co Pty Ltd v Westpac Banking Corp (1995) 184 CLR 265. In calculating time, ignore the day on which the statutory demand was served: section 105 of the Act and section 36 of the Acts Interpretation Act.

What happens if you do not pay a statutory demand?

pay the debt reach an agreement to pay You can apply to bankrupt your debtor or close (‘wind up’) their companyif they do not respond to the statutory demand within 21 days. Next :Statutory demand forms Print entire guide Related content Applying to become bankrupt County court judgments for debt

Can a creditor serve you with a statutory demand?

This is a formal request for payment issued from an outstanding creditor. While any creditor can serve you with a statutory demand, they are frequently utilised by HMRC chasing unpaid tax debts. Statutory demands are only served after a creditor has exhausted all other avenues of recovering the money you owe them.

Can a 6 year old make a statutory demand?

If the debt’s over 6 years old, you cannot usually make a statutory demand. You can get legal advice instead. There may be faster ways of getting smaller debts paid than making a statutory demand. You can apply to bankrupt your debtor or close (‘wind up’) their company if they do not respond to the statutory demand within 21 days.

Do you need a lawyer to challenge a statutory demand?

Challenge a statutory demand Contact the Insolvency Service When you can make a statutory demand You can make a statutory demand to ask for payment of a debt from an individual or company. Anyone who’s owed money (the ‘creditor’) can make a statutory demand. You do not need a lawyer.