Director liability in liquidation: directors may be jointly and severally liable for unpaid tax unless they rebut gross neglect. The liquidator must notify the Commissioner within thirty days of appointment; the Commissioner shall, after inquiry, notify within three months the amount sufficient to cover tax, interest or penalty payable by the company. If a private company's tax, interest or penalty cannot be recovered on winding up, every director during the relevant period is jointly and severally liable unless he proves to the Commissioner that non-recovery was 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 in liquidation: directors may be jointly and severally liable for unpaid tax unless they rebut gross neglect.
The liquidator must notify the Commissioner within thirty days of appointment; the Commissioner shall, after inquiry, notify within three months the amount sufficient to cover tax, interest or penalty payable by the company. If a private company's tax, interest or penalty cannot be recovered on winding up, every director during the relevant period is jointly and severally liable unless he proves to the Commissioner that non-recovery was not due to gross neglect, misfeasance or breach of duty.
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