VAT Obligations – Company Directors’ Liability: Supreme Court imposing imprisonment for Directors’ VAT criminal liability
The Supreme Court, has announced a 4 month custodial sentence for two Directors whose entity failed to settle both accrued and assessed VAT and submit VAT returns.
The Court has emphasized that the VAT provisions are of paramount significance for the national economy and sentences to be imposed on non-compliant VAT persons must be of a deterrent character. Although the company might be under liquidation, this will not be regarded as a mitigating factor when Directors and company officials are personally responsible for return submission and VAT settlement.
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