How do you defend yourself from liability for your spouse’s taxation obligations?

In addition to the taxpayer, 3rd parties specified as the spouse, the heir, as well as another entities referred to in the government may besides be liable for taxation obligations. The spouse shall be liable for the taxation liability of the spouse arising during the word of the property partnership. However, this work can be reduced by establishing a property separation that will have effect on future commitments.

When does the liability of the spouse arise for taxation arrears?

In accordance with Article 21(1) of the taxation Code (IP), a taxation liability arises on:

1. The occurrence of an event with which the taxation law binds specified an obligation;
2. Service of the decision of the taxation authority to find the amount of that obligation.

The liability of the taxable individual provided for in Article 26 of the PO and the liability of the spouse governed by Article 29 of the PO should be distinguished. The payer is primarily liable for the taxation liability of all of his assets and only then his spouse whose liability is limited to his share of the common assets.

Legal wealth

The statutory property union, in accordance with Article 31(1) of the Code of household and Care (CRO), arises between spouses under the law at the time of the marriage. It may besides be modified by the alleged prenup agreement in accordance with Article 47 of the CRO.

Possibility to limit liability for future taxation obligations

The spouses may modify the legal strategy of property unity. Pursuant to Article 47, the CRO may extend or restrict the common interest in property, establish separation or separation with compensation of earnings. Pursuant to Article 29(2) of the OP, the legal effects of the restriction, abolition, exclusion or cessation of the property partnership do not relate to taxation obligations arising before:

1. Conclusion of a contract to restrict or exclude statutory property partnership;
2. abolishing the property partnership by a final decision of the court;
3. Discontinuation of property in the event of incapacitation of the spouse;
4. The decision of the court to separate shall be valid.

However, despite the restriction, abolition, exclusion or cessation of the property union, the spouse may be jointly and severally liable as a household associate under Article 111 of the OP. However, in this case, it must cooperate in the conduct of the another spouse's business.

Establishment of compulsory property separation

By concluding a property agreement between spouses, liability for future obligations can be reduced. It is besides possible for the court to establish compulsory separation of assets under Article 52 of the CRO. However, there must be an crucial reason for this, which can be blamed (e.g. by 1 of the spouses of the common property) or innocent (e.g. illness). In principle, the separation of assets arises on the date indicated in the judgment, but the court may besides establish it on the date preceding the date on which the action is brought.

Can the spouse be liable for taxation arrears arising before the marriage?

In principle, it is assumed that the taxation liability of the spouse does not apply to contributions incurred before the matrimony (SN of 22 May 2012 No. II UK 339/11). It is worth noting, however, that earlier the SN spoke differently about this subject and came from the presumption that the property liability of the spouse included all the arrears, including those that existed before the property union was established (SN of 23 November 2011 No. IV CSK 71/11, Legalis).

The liability of the taxpayer’s spouse relates not only to taxation obligations arising after the establishment of the property union, but besides to claims arising from social safety contributions. A taxpayer's spouse may, pursuant to Article 306h of the PO, request the taxation authority to issue a taxation arrears certificate.

Tax liability of the spouse in the event of divorce, separation and annulment

The erstwhile spouse shall besides be liable for the taxation liability of the second spouse. This is simply a joint and respective liability with the payer for the taxation arrears incurred during the period of the property union, based on Article 110 of the OP. From the point of view of taxation law, divorce, separation or annulment of matrimony are treated the same way and only erstwhile a given commitment arises is relevant.

In the event of the death of a spouse, Articles 97 and 98 of the PO on the liability of heirs for taxation obligations shall apply. 1 of the spouses becomes an heir and joins his legal position.

Summary

Third parties may besides be liable for taxation obligations: the spouse, heirs and another persons referred to in the Act. In order for the spouse to be able to respond, the property union must apply between the spouses. However, his liability is limited to his share of the common assets. First, the taxable individual is liable and only then his spouse in accordance with Article 29(1) of the OP.

In order to avoid liability for taxation obligations, it is essential to establish a property separation which protects against future liabilities. It is besides possible to establish compulsory separation of assets by the court, on the date preceding the action on the grounds of the crucial reasons set out in Article 52 of the CRO. Pursuant to Article 29(2) of the OP, the legal effects of the restriction, abolition, exclusion or cessation of the property partnership do not relate to taxation obligations arising before:

1. Conclusion of a contract to restrict or exclude statutory property partnership;
2. abolishing the property partnership by a final decision of the court;
3. Discontinuation of property in the event of incapacitation of the spouse;
4. A rightful decision of the court to separate.

In addition, the spouse may be liable for taxation obligations despite divorce, separation or annulment of the matrimony pursuant to Article 110 OP and as a household associate pursuant to Article 111 OP or heir in accordance with Articles 97 and 98 OP.

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The information on the website is simply a description of the legal position at the date of publication and is not a legal advice on an individual case. The legal position of publication may change. The law firm is not liable for utilizing an alert to solve legal problems.