| (1) | This section applies where a company is wound up other than by means of an involuntary liquidation without having satisfied its outstanding tax debt, including its liability as a responsible third party, withholding agent, or a representative taxpayer, employer or vendor. |
| (2) | The persons who are shareholders of the company within one year prior to its winding up are jointly and severally liable to pay the tax debt to the extent that— |
| (a) | they receive assets of the company in their capacity as shareholders within one year prior to its winding-up; and |
| (b) | the tax debt existed at the time of the receipt of the assets or would have existed had the company complied with its obligations under a tax Act. |
| (3) | The liability of the shareholders is secondary to the liability of the company. |
| (4) | Persons who are liable for the tax debt of a company under this section may avail themselves of any rights against SARS as would have been available to the company. |
| (5) | This section does not apply— |
| (a) | in respect of a "listed company" within the meaning of the Income Tax Act; or |
| (b) | in respect of a shareholder of a company referred to in paragraph (a). |
[Section 181 substituted by section 68 of the Tax Administration Laws Amendment Act, 2013 (Act No. 39 of 2012)]
