Know the Due Dates of Income for All Return Forms – Year 2019
Who is accountable for paying the tax liabilities of the company if it fails to pay the corporate and monthly tax deductions to employees on due dates?
Based on the Income Tax Act 1967 (ITA), Section 75A, the company “director” is responsible.
What is a “director” according to the Act?
A Director Means:
- A person who holds the “director” post or whatever term is used for it. It is also someone who own at least 20% of the company’s ordinary share capital.
- Someone who owns at least 20% of the company’s ordinary share capital directly or indirectly.
- A person who owns at least 20% of the company’s ordinary share capital indirectly through an “Associate”.
A Significant Change
It is worth noting that before 24.1.2014 came, the required ordinary share capital requirement was at least 50%.
What Associate Means
“Associate” with regards to someone for the purpose above are broad, are the following:
Liable Company Directors
- A director when the tax was due and supposed to be paid by the company.
- A director when the debt that is related to the MTD is liable and the company has to pay for it.
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