Director liability for unpaid GST in liquidation: directors may be jointly and severally liable absent proof negating gross neglect. When a company is being wound up the appointed liquidator must intimate his appointment to the Commissioner, who after inquiry shall notify the liquidator of the amount sufficient to cover tax, interest or penalty then due or likely to become payable. If a private company's assessed 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 to the Commissioner that the non-recovery is not attributable 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 unpaid GST in liquidation: directors may be jointly and severally liable absent proof negating gross neglect.
When a company is being wound up the appointed liquidator must intimate his appointment to the Commissioner, who after inquiry shall notify the liquidator of the amount sufficient to cover tax, interest or penalty then due or likely to become payable. If a private company's assessed 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 to the Commissioner that the non-recovery is not attributable to gross neglect, misfeasance or breach of duty.
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