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Sep 06
  • News
  • September, 2013

Director Penalty Notices

Heavy responsibilities are placed on directors of companies which fail to pay their PAYG withholding and SGC obligations as they fall due. Directors become personally liable for a penalty equal to the amounts unpaid on their due dates.

When these amounts remain unpaid by companies, the ATO will issue Director Penalty Notices to the directors and will only remit those penalties if the company pays the outstanding amounts. The penalty will also be remitted if, within 21 days of receiving the Director Penalty Notice, the directors place the company into Voluntary Administration or Liquidation. This remission however will only take place if the company had reported its PAYG and SGC liabilities within three months of their due dates.

Newly appointed directors have 30 days to determine whether their company has complied with its obligations. If not, they must ensure that the company either pays their outstanding amounts or goes into Voluntary Administration or Liquidation within that 30 day period.

ATO Advice 26.8.13.

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CONSULTING ACCOUNTANTS . TAXATION SPECIALISTS . BUSINESS IMPROVEMENT