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Requirements for indemnity requests

All indemnity requests from insolvency practitioners must comply with the minimum standard.

Last updated 20 May 2021

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) for the expenditure of public money.

This standard requires that all requests:

  • 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
  • are accompanied by the Annexure A document, clearly setting out the costs and particulars for each task to be undertaken
  • are 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. They cannot be 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 will 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, we may consider the request and seek further information if necessary.

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