Tag Archives: personal liability for tax debts

ILN Today Post

Personal Liability for Company Tax Debts – Key Changes – Consultation Closes 2 May 2012

The Government has released further draft legislation dealing with director liability for company tax debts. The proposed new rules will:

  1. remove the ability of directors to have personal liabilities remitted by placing the company into administration or liquidation where PAYG withholding or superannuation guarantee amounts have been unpaid for more than three months;
  2. expand the director penalty regime to include superannuation guarantee amounts;
  3. create a defence for directors where the Commissioner decides that superannuation was not correctly paid by the company if, for example, reasonable care was taken to arrive at the correct position; and
  4. restrict access to PAYG withholding credits or company directors or their associates if the company has failed to pay withheld amounts to the ATO. This new draft legislation follows on from the government’s November 2011 withdrawal of another bill containing tax laws targeting directors, in the face of widespread criticism of its far reaching operation. The new draft legislation is open for consultation until 2 May 2012. More…
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