Tax department

Liability of third persons – taxpayer’s liabilities

One of the legal institutions introduced by the Tax Ordinance Act, in order to secure the interests of the government, is liability of third parties for tax arrears of the taxpayer.

Catalogue of tax arrears, for which third parties are liable, is a vast. There are e.g. direct tax arrears of the taxpayer, as well as those already taken by his successor in title, default interest in the tax debt, advance payment of Value Added Tax not returned in time, as well as the costs of enforcement proceedings.

“Third parties” in this case are category strictly defined in the Tax Ordinance Act. It includes members of closest relatives (ascendants, descendants, spouse, siblings), the purchaser of enterprise or its organized part, tenant or user of real estate belonging to the taxpayer, a shareholder of the company. In particular cases, this group includes even a divorced spouse of the taxpayer.

These persons are responsible with all their assets if certain statutorily criteria are fulfilled (e.g. the purchase of the enterprise). This responsibility arises from the constitutive decision, in which the due amount should be specified.

CGO Legal represents clients before tax authorities in cases concerning the liability of third parties for tax obligations. Furthermore, our employees are able to help in creating the legal and organizational structure that allows the minimization of incurring the risk of this liability.