Director liability: directors of private companies may be jointly liable for unrecoverable GST tax, interest or penalty absent proof.

Directors of a private company are jointly and severally liable for unpaid tax, interest or penalty on supplies if recovery from the company is not possible, unless the director proves that non-recovery is not attributable to any gross neglect, misfeasance or breach of duty. On conversion of a private company into a public company, that joint liability does not apply for amounts relating to the private company period if unrecovered before conversion, though personal penalties on directors remain unaffected.

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