Code of Virginia - Title 58.1 Taxation - Section 58.1-7 Same; liability of recipient of improper corporate distribution

§ 58.1-7. Same; liability of recipient of improper corporate distribution

If any corporation assessed with a tax, including penalties and interest thereon, distributes its assets without first paying such assessment to the Commonwealth or to the proper political subdivision, as the case may be, any person with actual notice of such assessment receiving any moneys or other property from such distribution shall be held personally liable for such assessment to an amount not in excess of his participation in such distribution and any purchaser with actual notice of any such assessment shall be liable therefor to the extent of the assets of the corporation coming into his hands. Nothing in this section shall be construed so as to affect the rights of any bona fide purchaser for value.

(Code 1950, § 58-25; 1984, c. 675.)

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Last modified: April 3, 2009