Director liability for unrecovered GST arises unless directors disprove gross neglect, misfeasance or breach of duty.

Directors of a private company are jointly and severally liable for unrecovered GST tax, interest or penalty for supplies during their directorship, unless they demonstrate that non-recovery was not due to gross neglect, misfeasance or breach of duty; on conversion to a public company the general director liability for prior unrecovered amounts does not apply to former private-company directors, though personal penalties on directors remain preserved.

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