Liability of Director for Payroll and VAT Debts: Valid Notification of Inability to Pay Disputed

• The case concerns the liability of a director for unpaid wage tax and VAT (omzetbelasting) under Article 36 IW 1990.
• Directors are jointly and severally liable for VAT debts if the company fails to pay and does not timely notify the tax authorities of its inability to pay within two weeks of the due date.
• If the notification of inability to pay is not made or is not legally valid, there is a presumption of manifestly improper management, making the director liable for the VAT debt.
• The director can only rebut this presumption by proving that the failure to notify was not attributable to him.
• In this case, the court found no valid notification and no breach of due care by the authorities; thus, the director remains liable for the VAT debt.

Source: uitspraken.rechtspraak.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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