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board member legal entity shall be recoverable from the representative
of the legal entity.
Pursuant to TPC Art. 8, par. 2, “tax responsible” is the person
responsible before the tax office for payment. In this context, it is gen-
erally accepted that the board members of a company are tax responsi-
ble and collection from their personal assets is possible. This may be
taken one step further to say that the representative of the legal entity
board member would be its tax responsible legal representative, and
therefore liable as well. However, there is no clarity in this respect. In
any case, the tax responsible may seek recourse from the taxpayer as
per their internal contractual relationship.
Conclusion
In light of the above explanations, it may be said that, as a princi-
ple, the legal entity is liable as a board member. However, there is no
clarity in the relevant provisions and the subject will be clarified in
practice.
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NEWSLETTER 2014