Representative assessee liability permits retention of funds and subjects representative to principal's tax duties and recovery rules. Representative assessee liability is limited to the principal's tax bases and, in representative capacity, the representative bears the same duties and liabilities as if the tax bases accrued to him. Tax on those bases is leviable on and recoverable from the representative as it would be from the principal. The representative may retain estimated liability from monies payable to the principal and may obtain an Assessing Officer's certificate to authorise retention; the certificate caps recoverability except where additional principal assets are available. Payments made by the representative are recoverable from the principal or retainable from representative funds.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Representative assessee liability permits retention of funds and subjects representative to principal's tax duties and recovery rules.
Representative assessee liability is limited to the principal's tax bases and, in representative capacity, the representative bears the same duties and liabilities as if the tax bases accrued to him. Tax on those bases is leviable on and recoverable from the representative as it would be from the principal. The representative may retain estimated liability from monies payable to the principal and may obtain an Assessing Officer's certificate to authorise retention; the certificate caps recoverability except where additional principal assets are available. Payments made by the representative are recoverable from the principal or retainable from representative funds.
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