top of page

brisbane • sydney • melbourne

newspaper_k72w.png

A collection of updates, articles and papers written by The Little CFO & The Little CFO Legal

ATO Reminder: The Director Penalty Regime.

Directors are responsible for ensuring their company complies with its tax and super obligations.


The ATO has reminded current and former directors that:


๐ŸŸก if the company does not meet its PAYG withholding, GST or SGC obligations, the ATO may recover these amounts from the director personally; and


๐ŸŸก incoming directors need to undertake due diligence and check any unpaid or unreported PAYG withholding, goods and services tax (GST) or SGC liabilities or risk becoming personally liable for a penalty equal to these amounts - subject to a 30 day period to attend to them or to appoint an administrator or to wind up the company.


**Even if you become a new director and you resign within the 30 day period:


๐Ÿ”น You will still be liable for the unpaid PAYG withholding, net GST or SGC liabilities of the company that were due before your appointment;


๐Ÿ”น For PAYG withholding and net GST, you will also be liable for any unpaid liabilities for reporting periods that started while you were a director, except if you resigned before the first withholding event in that period;


๐Ÿ”น For SGC, you will also be liable for any unpaid liabilities for reporting periods that started while you were a director, except if you resigned before the date the charge became payable.


https://www.ato.gov.au/Business/Your-workers/In-detail/Director-penalty-regime/

6 views0 comments

Disclaimerโ€‹: Information on this website is of a general nature and is not to be relied upon as legal, financial, accounting, or other professional advice as the information provided does not consider your objectives, financial situation or needs. You should seek legal, financial, accounting, and such other professional advice as necessary or appropriate before making any financial, legal, or other decision. The Little CFO, The Little CFO Legal, their owners, affiliates, and the authors of the content & copy accept no responsibility, or any form of liability, arising from any reliance upon, reproduction or use of any information on this website, including where same is then shared in another format.

 

Should you require advice please connect with us so that we may provide advice tailored to suit your specific circumstances.

โ€‹

โ€‹

bottom of page