15.2.1.9 Directors’ liability under section 36 of the Collection of State Taxes Act

The tax basis for liability under Section 36 of the Collection of State Taxes Act takes a completely different position where the restoration of a turbo-liquidated company is concerned: restoration is not a condition for the ability to invoke the tax basis for liability. The tax liability of directors is therefore neither the cause nor by definition the consequence of the restoration. This follows for instance from a ruling of the Supreme Court in which the directors of a turbo-liquidated company were held liable under Section 36 of the Collection of State Taxes Act, while no reopening of the winding-up proceedings had taken place. Despite the fact that this approach of the Supreme Court contributes positively to judicial efficiency, a legal provision for this matter is needed with a view to legal certainty.