We have previously reported that the government is looking to extend the current Director Penalty Notice regime from unpaid PAYG to include unpaid superannuation. Continue reading
Tag Archives: director penalty notice
Extension of Personal Liability for Company Directors – Superannuation
A Director Penalty Notice currently relates only to unpaid PAYG and a director may be held personally liable and lose personal assets if they do not comply with a DPN within 21 days of issue. Continue reading
Important Changes to Director Penalty Notices (“DPN”)
From 1 July 2010, there have been some extremely important changes in respect of Director Penalty Notices (“DPN”) that you (and your clients) need to know: Continue reading
Are you a Director? Have you moved lately? Update your residential address on the ASIC register – or else!!
Company directors MUST ensure their residential address details are kept up to date on the ASIC register. Continue reading
An example of the ATO holding a director personally liable for PAYG
THE tax office is chasing failed Kleenmaid founder Brad Young for $1 million.
The Deputy Commissioner of Taxation has lodged a claim in the Supreme Court of Queensland against Mr Young for $1,033,855, plus interest and legal costs.
The ATO alleges that Mr Young - whose up-market whitegoods company collapsed owing $82m to creditors - failed to pay 14 months’ worth of “pay as you go” deduction debts.
Under Australian tax law, the directors of a company may be held personally liable for PAYG debts - unless they make a repayment plan with the tax office, appoint an administrator or start to wind up the company.
The statement of claim by the tax office, filed in the Supreme Court in Brisbane on July 10, says that Mr Young was a director of Kleenmaid Retail Pty Ltd from September 1, 2007, until February 23 this year.
It lists the company’s monthly PAYG deductions as ranging from $51,835 to $111,171 during Mr Young’s time as a director.
“The defendant is liable to pay to the commissioner the total sum of the penalties, which is $1,033,855,” the statement of claim alleges.
If you receive a director penalty notice – you must act on it before the 14 day period expires. if you fail to do so, you will be in the position of these directors.
Call Liquidation Direct for insolvency advice on 1300 767 525 or 1300 100 285
Tax Debts – you need to know about Director Penalty Notices
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Every company that employs people are required to withhold tax from employee wages and entitlements and remit this to the tax office.
Often when a company is in trouble, this is one of the first payments directors choose not to pay. Continue reading
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