CONCEPTUAL ASPECTS REGARDING JOINT AND SEVERAL LIABILITY OF COMPANY ADMINISTRATORS IN TAX MATTERS
CONCEPTUAL ASPECTS REGARDING JOINT AND SEVERAL LIABILITY OF COMPANY ADMINISTRATORS IN TAX MATTERS

Summary/Abstract: The activity of companies under Law no. 31/1990 is facing a series of challenges, often independent of the will of the shareholders, associates or management and control bodies, challenges generated by external factors, at macroeconomic level, such as economic instability or existing political conflicts at international level, but also by microeconomic factors, such as the problem of maintaining a positive cash flow, due to delays regarding collections from clients. In addition to the influence of these extrinsic factors, there are situations in which the illegal, culpable actions or inactions of the company administrators, exercised in bad faith, determine the non-payment of the outstanding payment obligations of the debtor and thus attract the state of insolvency of the company. The fiscal procedural legislation establishes a distinct procedure for the joint and several liability of the governing bodies of a taxpayer, a procedure that contains specific eligibility criteria, as well as different conditions for contesting the joint and several liability decisions. Not infrequently, the courts are charged with ruling on the legality and validity of the decisions to engage the joint and several liability of the administrators, in assessing the existence of the condition of bad faith, a necessary and mandatory condition for incurring joint and several liability in fiscal matters.

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