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  • Requirements for indemnity requests

    All indemnity requests from insolvency practitioners must comply with a minimum standard in order to be considered. This is due to legal and policy obligations imposed on the Deputy Commissioner of Taxation (DCT) in relation to the expenditure of public money.

    This standard consists of the following requirements:

    • The request must fully address part 1 of the Indemnity checklist for insolvency practitioners, as well as part 2 if indemnity is being sought to commence a litigation action. It must also be accompanied by the Annexure A document, clearly setting out the costs and particulars for each task to be undertaken. See Checklist to assist insolvency practitioners.
    • All requests must be in writing and sent either  

    Requests must be addressed to the Deputy Commissioner of Taxation (DCT) and be made 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' to ensure requests are referred to the correct team for actioning,

    Except in exceptional circumstances, all indemnity requests must be made before an action is commenced and before committing to the use of particular solicitors, legal counsel or other experts. This is to enable the DCT to provide input regarding appointments and the rates proposed. The DCT will also need to assess the risks, merits and prospects of success and recovery of a proposed action before making a decision to commit any Commonwealth resources.

    Indemnity requests which do not comply with the above minimum standards will usually not be treated as a genuine request and may not receive a response. Where it is clear an insolvency practitioner made an attempt to comply with these standards but not all aspects were properly addressed, the DCT may consider the request and seek further information if necessary.

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    Last modified: 15 May 2020QC 43961