Director liability in company liquidation: directors jointly and severally liable for unpaid GST unless they prove no gross neglect. A liquidator must notify the Commissioner within thirty days of appointment; the Commissioner shall inquire and, within three months of intimation, notify the liquidator of the amount sufficient to provide for any tax, interest or penalty then due or likely to become payable. If a private company's assessed tax, interest or penalty cannot be recovered in winding up, every person who was a director during the relevant period is jointly and severally liable unless he proves the 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 in company liquidation: directors jointly and severally liable for unpaid GST unless they prove no gross neglect.
A liquidator must notify the Commissioner within thirty days of appointment; the Commissioner shall inquire and, within three months of intimation, notify the liquidator of the amount sufficient to provide for any tax, interest or penalty then due or likely to become payable. If a private company's assessed tax, interest or penalty cannot be recovered in winding up, every person who was a director during the relevant period is jointly and severally liable unless he proves the non-recovery is not due to gross neglect, misfeasance or breach of duty.
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