Director liability for company tax arises if recovery fails; directors are jointly and severally liable unless proving no gross neglect. The appointed receiver (liquidator) must notify the Commissioner within thirty days of appointment; the Commissioner shall, after inquiry, notify the liquidator within three months of the amount sufficient to provide for any tax, interest or penalty payable by the company. If a private company's tax, interest or penalty cannot be recovered on winding up, every person who was a director during the relevant period is jointly and severally liable, unless the director proves to the Commissioner that non-recovery is not due to gross neglect, misfeasance or breach of duty.
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.
Director liability for company tax arises if recovery fails; directors are jointly and severally liable unless proving no gross neglect.
The appointed receiver (liquidator) must notify the Commissioner within thirty days of appointment; the Commissioner shall, after inquiry, notify the liquidator within three months of the amount sufficient to provide for any tax, interest or penalty payable by the company. If a private company's tax, interest or penalty cannot be recovered on winding up, every person who was a director during the relevant period is jointly and severally liable, unless the director proves to the Commissioner that non-recovery is not due to gross neglect, misfeasance or breach of duty.
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