Director liability for unrecovered company GST: joint and several responsibility unless lack of gross neglect is proven.

Where tax, interest or penalty owed by a private company for supplies cannot be recovered, every person who was a director during the relevant period is jointly and severally liable unless he proves non recovery is not attributable to any gross neglect, misfeasance or breach of duty. On conversion to a public company, that director liability does not apply to unrecovered amounts attributable to the private company prior to conversion, though personal penalties on directors remain unaffected.

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