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Thread: Tax - Taking over company from a family member that passed away.

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    Tax - Taking over company from a family member that passed away.

    Hi Everyone

    My brother registered a company in 2009. The company started trading in 2014 and we took it over last year on the 1 December 2017.

    The company was not registered for Income Tax, Vat etc. We now registered the company for Income Tax and Vat. My question is, will the new shareholders be responsible for any tax that was not paid when my brother was doing business under the company name?

    It is a small company and the best year was 2015, I see the annual turn over was more than R500 000.

    We basically want to keep the company open but if we are going to be held responsible for mistakes he made I would rather consider closing down the company.

    Any recommendations?

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    Site Caretaker Dave A's Avatar
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    With a maximum annual turnover of less than R1 million per annum, being registered for VAT is not compulsory so there should be no historical liability. Income tax is a different matter though.
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