Did you know that no matter you are not involved in your family member`s business activities, you could be a guarantor for his/her tax loans?
Namely, regarding of Article 157, paragraph 2 of the Personal income tax law stipulate that, for the income tax from self-employed activity, all adult household members of the taxpayer who at the time of the obligation arise make the household of the taxpayer within the meaning of Article 10 of this Law are subsidiarity responsible for their assets.
A member of the family, in the sense of this law, is considered a spouse, parents, children, adoptee and adopter of the taxpayer.
In accordance with the Law on Tax Procedure and Tax Administration, the tax debtor is also a guarantor who is responsible for paying taxpayers’ tax debt, in the case that the taxpayer does not pay the debt on a noted date, the debt collection from tax debtor and unpaid tax liabilities in connection with the performance of self-employed activity, regard to the collection of taxes and contributions, it can be applied to the tax guarantor responsible for the payment of the taxpayer’s tax debt and in this way, you can be subsidiary responsible for the tax debt of an adult household member who is a taxpayer.
This is just one of the specifics that taxpayers are often unaware of and recently is confirmed in the legally binding opinion of the Ministry of Finance No. 430-00-254 / 2019-04 of 13 May 2019.
If you need additional information about this topic you can contact out tax team via email firstname.lastname@example.org.