Section 88 - Liability in case of company in liquidation.

Director liability: directors can be jointly liable for unrecovered company tax unless they rebut gross neglect or misfeasance.

The liquidator must inform the Commissioner within thirty days of appointment; the Commissioner will, after inquiry, notify within three months the amount deemed sufficient to provide for tax, interest or penalty then due or likely to become due. If, on winding up a private company, determined tax, interest or penalty cannot be recovered, all persons who were directors during the relevant period are jointly and severally liable unless they prove to the Commissioner that non-recovery is not attributable to gross neglect, misfeasance or breach of duty.