The Tax and Customs Administration may hold the executive director of a business liable if the business is unable promptly to settle up its outstanding wage or value-added taxes. There is a way out of this, by ensuring that the entrepreneur in question should in good time advise the tax authorities, in good time and in writing, of the inability to pay.
The Supreme Court of the Netherlands recently ruled that inability to pay need not be reported separately in cases involving the Tax and Customs Administration already being aware of the entrepreneur being in financially dire straits.
! Be this as it may, we would recommend that you leave nothing to chance and always file a timely report with the tax man whenever you inadvertently find yourself unable to pay!