A company and its manager were indicted for non-filing of tax returns. The manager contended that his wife is registered as a manager in the company and she is the one who signs tax returns.
The Court found both company and manager guilty of the offence and held that in non-filing of tax returns offences by a company liability will be attributed also to any person whom at the time of the offence was an active manager unless proven that the offence was conducted without his knowledge or he held all reasonable means to prevent it. In the Tax Ordinance, as is the case with antitrust offence, the test of whom is an active manager is a substantial test of actual manager of the company and the question is whether the manager could have prevented the offence and not whether he is registered as a director at the Companies Registrar or with the company or whether he signs tax returns.