Non-paid AHV contributions: Another judicial decision against participator

Each organ of a company is liable privately and solidly for unpaid social insurance contributions. A court decision confirms this once more.

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Law is clear: Organs of a company are liable for unpaid social insurance contributions (Art. 52 para. 1 and 2 AHVG).

The Insurance Court of St. Gallen confirmed this with a negative decision in an appeal (VersGer SG AHV 2015/27 of 10 March 2017).

The complainant was the sole shareholder of a GmbH and - according to his own statements - merely an employee latter without management duties. Those were taken over from another person, registered in the commercial register as managing director as well. The GmbH went into bankruptcy and the compensation fund demanded the payment of more than CHF 124'000 from the complainant for unpaid AHV contributions.

The complainant was convincing that he had not had access to the business books and had been duped, so that even the bankruptcy office acknowledged his claim of salary payments into the first class of the claims and pressed criminal charges against the managing director for crass mismanagement.

The Insurance Court did not accept these pretexts and determined, that the complainant as an organ had a right to access and control, and that it was precisely his duty to uncover and deal with the grievances. If he did not have the necessary qualification, he would be in fault.

Conclusion: Whoever acts as an organ should take this mission seriously and actually execute the necessary control function. More than ever valid: "Ignorance does not protect from punishment". Organs are shareholders of limited liability companies (GmbH), board members of corporations (AG), persons registered as managing directors and liquidators.

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