On 27 October 2026, the State Revenue Committee (SRC) issued a landmark clarification reinforcing the personal liability of company directors and beneficial owners for tax arrears, even in the event of corporate bankruptcy. The statement references Article 54 of the Tax Code and recent Supreme Court rulings establishing that tax obligations constitute public-law liabilities that cannot be discharged through insolvency proceedings. The SRC emphasized its authority to pursue recovery from controlling persons who directed the dissipation of assets or failed to ensure tax compliance prior to bankruptcy filing.
Key Takeaways
- Piercing the Corporate Veil: The SRC will actively seek court orders to hold directors personally liable where tax debts exceed 10,000 MCI and evidence of willful non-payment or asset stripping exists.
- Joint and Several Liability: Beneficial owners and shadow directors may be joined as co-defendants in tax recovery lawsuits, with the burden of proof shifted to them to demonstrate due diligence.
- Preventive Measures: The SRC recommends that boards implement tax governance frameworks, including quarterly tax health checks and mandatory tax compliance certifications for C-suite executives.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement