https://www.taxtmi.com/caselaws?id=164954 A company's tax arrears cannot automatically be recovered from the personal assets of its directors because the company remains a separate juristic person. The corporate veil may be lifted only where proper pleadings and positive material show that the company form was used as a cloak for fraud, misrepresentation, diversion of assets, or other unlawful purpose, or where a statute expressly authorises personal recovery. Mere non-payment of public dues by the company is insufficient to fasten liability on directors. On the facts, no adequate pleading or material justified piercing the corporate veil, so the recovery notice against the directors was unsustainable. en-us Wed, 11 Nov 2009 00:00:00 +0530 Mon, 27 Oct 2014 18:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164954 A company's tax arrears cannot automatically be recovered from the personal assets of its directors because the company remains a separate juristic person. The corporate veil may be lifted only where proper pleadings and positive material show that the company form was used as a cloak for fraud, misrepresentation, diversion of assets, or other unlawful purpose, or where a statute expressly authorises personal recovery. Mere non-payment of public dues by the company is insufficient to fasten liability on directors. On the facts, no adequate pleading or material justified piercing the corporate veil, so the recovery notice against the directors was unsustainable. Case-Laws VAT and Sales Tax Wed, 11 Nov 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164954