R.G.P. Anderson, Glebe, June 6. In the realm of income tax, legislation provides that directors of a failed company can, in some instances, be held liable for any unpaid group tax owing in respect of that company's former employees. This may not solve the problem, but it may at least go some way towards keeping the bastards honest, particularly if proposed amendments to bankruptcy rules get off the ground. John Butler, Epping, June 6. Legislation is long overdue for courts to impose a compulsory custodial sentence on company controllers who deliberately divert funds into a contrived shelter when a company is facing failure, thereby cheating employees of their entitlements.
Fines are an insignificant deterrent.
Nothing puts the frighteners into scheming administrators like the thought of a stretch in jail. Laurie F. Keatinge, Brooklyn, June 6. Rodney Adler is widely reported as saying that as a director of both HIH and One. Tel he did nothing wrong. Paul Harley-Green, Newport, June 8.