Recent Changes – 27th June 2012
Recent changes to Director Penalty Notice provisions were passed by the senate on 27 June 2012. These changes will have a significant impact or any director who has received a Directors Penalty Notice.
What is vitally important is that every director is aware of these changes and the serious nature of them and how they will impact you and your business. If you have a PAYG tax debt then you may be served with a Director Penalty Notice by the ATO.
The aim of a Director Penalty Notice is to make directors liable for their company’s unpaid tax debt. As a director, you will no longer be able to avoid personal liability for a PAYG tax debt, which comes with a Director Penalty Notice, if the following applies:
- Your debt is older than three months and or your debt was not reported to the ATO within three months of the lodgement date.
- As a director, you may also by liable for your company’s unpaid superannuation liabilitywhen you receive a penalty.
- Directors, and associates of directors, may now also be liable for a new personal income tax liability. This will make directors and their associates potentially liable for a company’s unpaid PAYG withholding liability.
Yes. If your business has a tax debt or you have received a Director Penalty Notice it is vital that you seek professional advice, we have various options you may wish to consider simply call us on 1300 818 575.
There can be significant consequences for not complying with the ATO’s notice; this can include losing personal assets such as cars, property or shares.