One of the legal institutions introduced by the Tax Ordinance Act, in order to secure the interests of the government, is liability of third persons for tax arrears of the taxpayer.
Catalogue of tax arrears, for which third parties are liable, is a vast. There are for example direct tax arrears of the taxpayer, as well as those already taken by his successor in title, default interest in the tax debt, advance payment of Value Added Tax not returned in time, as well as the costs of enforcement proceedings.
In this case Tax Ordinance Act strictly defines the category of “Third parties”. It includes closest relatives (ascendants, descendants, spouse, siblings). The purchaser of enterprise or its organized part, tenant or user of real estate belonging to the taxpayer, a shareholder of the company are also the third parties. In particular cases, this group includes even a divorced spouse of the taxpayer.
These persons are responsible with all their assets if certain statutorily criteria are fulfilled (e.g. the purchase of the enterprise). This responsibility arises from the constitutive decision, in which the due amount should be specified.
CGO Legal law firm represents clients before tax authorities in cases concerning the liability of third persons for tax obligations. Furthermore, our employees are able to help in creating the legal and organizational structure that allows the minimization of incurring the risk of this liability.
If You want to learn more about liability of third persons, please contact us.