Builders Tax Liability

magicart


Joined: 05/10/2008
Posts: 985

Message Posted:
15/06/2009 22:00

Need some advise please on the following matter.



What would happen to the tax liability of our builder or developer assuming they are unable to pay it..?



Will the government expect the purchaser to pay the vendors tax and if the purchaser is unable to do so what action could the government take?



Thanks in anticipation.



Art

halffull


Joined: 26/01/2009
Posts: 571

Message Posted:
15/06/2009 22:04

Interesting question,I also look forward to a sensible answer from someone like elko

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
16/06/2009 00:14

"What would happen to the tax liability of our builder or developer assuming they are unable to pay it..? "

There is no tax liability until the builder/developer declares to a governement agencey that they are ready to pay it. If they can't at that stage they may find themselves in deep water owing money to the government. Assests frozen, sold at auction by the governement to raise the taxes.

So simply put; if the builder can't pay, he won't declare that he his.

The side effect of this is that people may never get their Kocan (Title Deed) until they've been to court to make the builder/developer pay his taxes so that Deeds can be issued.

"Will the government expect the purchaser to pay the vendors tax"

An absolute NO. You will never be liable to pay someone elses taxes.

"and if the purchaser is unable to do so what action could the government take? "

Could never happen

magicart


Joined: 05/10/2008
Posts: 985

Message Posted:
16/06/2009 08:34

Thank you so much for your very informed reply.



In terms of assests being frozen-would the property developed by the builder form party of his assets.?