Wind Up Wind Down

Company tax debt does not automatically become the personal debt of a director. We explain when SARS may pursue personal liability, including negligence or fraud, PAYE not paid over, asset transfers, inter-company loans and circumstances involving abuse of the corporate structure.

A company can be liquidated even if it owes SARS money. Find out what happens to outstanding tax debt and returns, and when liquidation may be the appropriate solution.

f your company cannot pay SARS, the right solution depends on whether the problem is temporary or the business has become insolvent. Understand the options available before the debt becomes more difficult to resolve.

A company experiencing financial difficulty does not automatically make its directors personally liable for its debts. However, personal surety, reckless trading, SARS debt and certain transactions can create personal exposure. Understanding when company debt can become a director’s personal responsibility is an important first step when a business is facing insolvency.