Liquadation

[Yolie@123]

If a owner of a business didn't meet his responsibilities by NOT paying VAT, Paye and Uif.

Now all of a sudden he wants to liquadate himself. What are the repercutions?

Deducting from employees but not paying over.

Can he get scott-free of this.

Just interested.

 

[Drifter]

Nope, he broke the law and can face jail time.

 

[Yolie@123]

It's fantastic. He had for years lavish lifestyle. Now all of a sudden wants to liquadate because he owe too much for SARS paye and uif.

What's going to happen to the poor workers

 

[Yolie@123]

It's fantastic. He had for years lavish lifestyle. Now all of a sudden wants to liquadate because he owe too much for SARS paye and uif.

What's going to happen to the poor workers

 

[Drifter]

If he liquidates, whatever comes out of the process 1st, would go to SARS etc. IF there is anything left, it "may" go to the employees. Depends on the liquidater.

 

[ToxicBunny]

Also, as far as I know... should SARS not get their money from him, they may come after the employees for unpaid taxes...

 

[noxibox]

Also, as far as I know... should SARS not get their money from him, they may come after the employees for unpaid taxes...

You are required to show proof that the tax was deducted. If it was it then falls to the employer to prove they paid it to SARS.

 

[ToxicBunny]

You are required to show proof that the tax was deducted. If it was it then falls to the employer to prove they paid it to SARS.

As I said may

I'm no tax expert when it comes to these things... I just know people who have been screwed by their employers and SARS came after them for the money, but I don't know all the details of why SARS came after them specifically.

 

[ant_man]

Individuals Sequestrate and Businesses Liquidate
He will need to do both in order to keep SARS at bay.

 

[HavocXphere]

If you're an affected employee I'd suggest getting a proper lawyer asap because I'm pretty sure you'll need to act proactively in order to make sure you don't suffer financially and its not exactly plain sailing so you'll need someone to hold your hand (and no an IT forum does not count). Oh and do this fast...like the second the liquidation is announced (watch the gov gazette - liquidations must be announced).

(Pty) Ltd protection can be stripped if a judge feels it was intentionally abused - meaning the debt hits the directors/shareholders in their personal capacity so liquidation isn't necessarily going to save the day for him. I don't think they do this often though.
http://www.findanattorney.co.za/content_piercing-corporate-veil

In general the new companies act is written in such a way that if 1) the directors did something wrong 2) someone is out to get them, then they will go down in flames. Section 22, 76 and 77 come to mind.

The chances of him walking away are very slim if one or more employees decides to go on a crusade.

Also, as far as I know... should SARS not get their money from him, they may come after the employees for unpaid taxes...

Maybe. Or more likely SARS will attempt to collect from the employees, then the employees will cry foul and then the whole thing will go to court.

 

[nightjar]

Nope, he broke the law and can face jail time.

Jail time depends on who he is and what connections he has.

........... because Aurora owners are extremely well connected individuals: Mandela's grandson Zondwa is managing director of the company and Zuma's nephew Khulubuse is chairman. They still live a life of luxury which is paraded everyday in the pages of South African newspapers. In September, Khulubuse Zuma attended the wedding of national police commissioner Bheki Cele in a R2.5-million Mercedes-Benz SLS63 AMG gullwing.
http://www.marxist.com/aurora-mine-scandal.htm

 

[TimWarren12]

Right you guys are there! He's broken the law but for you its important that you seek legal advice to save yourself from the damage.

 

[MagicDude4Eva]

You are required to show proof that the tax was deducted. If it was it then falls to the employer to prove they paid it to SARS.

Not true. As part of the whole Fidentia/Software Futures scandals, I was one of the many where Fidentia deducted PAYE but never paid over. Despite my payslips showing that PAYE was deducted and I never benefited, SARS has been gunning for me for the last 7 years trying to get money back. They now they wont get it, but try to intimidate tax payers. If tax was deducted by the company and you did not benefit, there is no law that SARS can come after you - just remember this (the painful outcome is however that as long as SARS holds onto this belief, you will not be able to get a tax-clearance and they will audit you forever long).