Liability of firms

Tax200742 sections3 chapters

Chapter III Chapter III

Statutory text

(1) Where any firm is liable to pay any tax, interest, penalty or any other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
(2) Where a partner of a firm liable to pay any tax, interest, penalty or other amount under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax or penalty or other amount remaining unpaid at the time of his retirement and any tax, interest, penalty or other amount upon the date of retirement, though unassessed.
(3) when a firm liable to pay the tax or penalty under this Act is dissolved or discontinued, the assessment of the tax, calculation of interest and imposition of penalty shall be made as if no dissolution or discontinuance of the firm had taken place and every person who was, at the time of dissolution or discontinuance, a partner of the firm and the legal representative of any such person who is deceased, shall be jointly and severally liable to pay the tax assessed, interest calculated or penalty imposed.

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