Liability of the managing director due to insufficient oversight of the payroll accountant

If a managing director of a GmbH delegates their tax-related obligations to another person, this does not release them from responsibility. Instead, the managing director assumes duties of selection and oversight, and any breach of these duties may lead to personal liability.

The managing director must review the work of the delegated person at intervals that prevent violations of tax obligations—particularly with regard to payment obligations—from going unnoticed.

If the managing director’s review was limited only to the total amounts and did not include the composition of the figures, this does not constitute a sufficient review to determine whether the payroll accountant properly fulfilled their assigned duties.

VwGH 21.06.2024, Ra 2023/13/0040