#directors
Director Penalty Notices and Personal Liability for Company Tax
In some circumstances, company directors may be held personally liable for company debt. Those circumstances include where a company owes money to the ATO under the Pay As You Go withholding system (PAYG) and/or pursuant to its Superannuation Guarantee Charge obligations (SGC).
The Taxman takes this liability very seriously, considering that PAYG and Super money is ‘other people’s money’; with the current wide scrutiny on ‘wage theft’, he’s doing his bit to ensure companies pay their due.
As if that wasn’t enough, parliament is currently scrutinising proposed legislation which will introduce personal liability on directors for GST (among other taxes) not paid by their companies. The hits just keep on coming. For an overview of the current penalty regime, and how directors are personally liable for PAYG and SGC, check out our article here.
Business Advisory