Liquidator notification and Commissioner assessment can fix company tax obligations and render directors jointly and severally liable. The liquidator must notify the Commissioner of his appointment; the Commissioner may then inquire and notify the liquidator of the amount sufficient to provide for tax, interest or penalty payable or likely to become payable by the company. If tax, interest or penalty due from a private company cannot be recovered, every person who was a director during the relevant period is jointly and severally liable unless he proves the non-recovery was not due to his 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.
Liquidator notification and Commissioner assessment can fix company tax obligations and render directors jointly and severally liable.
The liquidator must notify the Commissioner of his appointment; the Commissioner may then inquire and notify the liquidator of the amount sufficient to provide for tax, interest or penalty payable or likely to become payable by the company. If tax, interest or penalty due from a private company cannot be recovered, every person who was a director during the relevant period is jointly and severally liable unless he proves the non-recovery was not due to his gross neglect, misfeasance or breach of duty.
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