Director liability for unrecovered GST requires proving absence of gross neglect to avoid joint and several responsibility.

Where a private company's GST tax, interest or penalty cannot be recovered, every person who was a director during the relevant period is jointly and severally liable unless he proves the non-recovery cannot be attributed to gross neglect, misfeasance or breach of duty; on conversion to a public company pending recovery, the joint and several liability does not apply to former private-company directors in respect of those sums, but any personal penalty on a director remains unaffected.

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