The director penalty regime and its extension to GST
Source: Taxation In Australia Journal Article
Published Date: 1 Apr 2020
With effect from 1 April 2020, company directors will have a heightened risk of being made personally liable for their company's outstanding tax liabilities. Pursuant to the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020, which received royal assent on 17 February 2020, the director penalty regime has been extended to make company directors personally liable for unpaid GST (including luxury car tax and wine equalisation tax). The measures, which were introduced as part of the government's ongoing reform of Australia's corporate insolvency regime, will impact many company directors as it is very common for businesses to have GST debts. It is critical that directors ensure that all business activity statements and GST returns are lodged before the statutory lockdown date, to ensure that they can achieve remission of their personal liabilities by placing the company into administration or appointing a liquidator.
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Details
- Published By: Tamara Cardan, James Donoghue
- Published On:1 Apr 2020
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