Court Rules Private Agreement on Tax Liability Invalid; Public Tax Responsibilities Cannot Be Privately Negotiated or Apportioned.

Court Rules Private Agreement on Tax Liability Invalid; Public Tax Responsibilities Cannot Be Privately Negotiated or Apportioned. https://www.taxtmi.com/highlights?id=59887 Recovery of outstanding tax demands from the director of a private company in liquidation - Joint or severe liability - As per the MOU / Settlement agreement, all the income tax liabilities will be borne and paid by one of the Directors (Not the present petitioner) - It is a settled law that while rights in personam are arbitrable, rights in rem are unsuited for private arbitration and can only be adjudicated by the Courts or Tribunals - private parties cannot apportion Income Tax liability by private agreement as the petitioner has sought to do in the present case. - HC en-us Wed, 29 Sep 2021 17:35:51 +0530 Wed, 29 Sep 2021 17:35:51 +0530 TaxTMI RSS Generator Court Rules Private Agreement on Tax Liability Invalid; Public Tax Responsibilities Cannot Be Privately Negotiated or Apportioned. https://www.taxtmi.com/highlights?id=59887 Recovery of outstanding tax demands from the director of a private company in liquidation - Joint or severe liability - As per the MOU / Settlement agreement, all the income tax liabilities will be borne and paid by one of the Directors (Not the present petitioner) - It is a settled law that while rights in personam are arbitrable, rights in rem are unsuited for private arbitration and can only be adjudicated by the Courts or Tribunals - private parties cannot apportion Income Tax liability by private agreement as the petitioner has sought to do in the present case. - HC Highlights Income Tax Wed, 29 Sep 2021 17:35:51 +0530 https://www.taxtmi.com/highlights?id=59887