Priority in bankruptcy

—(1) Notwithstanding any other enactment, the trustee in bankruptcy of an person, or the liquidator of a company which is being wound up, shall apply the assets of the bankrupt individual or the company in the payment of tax due under a tax law as a privileged debt in priority over all debts of that person of company. (2) The application of the assets in the payment of tax due shall occur whether or not the tax was assessed before or after the date of bankruptcy or commencement of winding up. (3) The application of the assets in payment of tax as a priority over all debts shall not apply to law costs and any wages which constitute a privileged debt under the Labour Act. CAP. 297.