The proposed guidance sets out the key principles that ASIC considers directors need to take into account in performing their duty to prevent insolvent trading. Continue reading
Tag Archives: insolvency advice
Rise in middle-class bankrupts
PROFESSIONALS and people on high incomes are declaring bankruptcy faster than ever in Australia. 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
Brief example of advice given on the Insolvency advice line
Recently the 24 hour insolvency advice line provided assistance to a young lady who lost her restaurant business. Continue reading
Personal bankruptcy nears record high
Amid rising debt and unemployment, the number of filings for personal bankruptcy is just shy of a record.
Personal bankruptcies have risen to 7,164 for the March quarter, a report from the Insolvency and Trustee Service of Australia (ITSA) shows.
This is just 5 less than the record personal bankruptcies of 7,169, in June 2001.
The March quarter 2009 figure represents a 7.75 per cent rise from the from 6,649 bankruptcies lodged in the December quarter and is up 13.66 per cent from the March quarter last year.
An ITSA executive director says 85 per cent of bankruptcies were from consumers who have lost employment or cannot manage credit debt levels.
“The causes that people give on the consumer side of our ledger are loss of income or employment, people moving between jobs and all those factors, or inability to manage their credit levels”.
Consumer bankruptcies are well over 85 per cent of all bankruptcies.
Total personal insolvency activity, including debt agreements and bankruptcy, rose to 9,300, an increase of 18.25 per cent, compared to 7,865 for the same period in 2007-08.
AÂ growing proportion of people are entering into voluntary debt agreements, rather than being declared bankrupt.
The ITSA report showed that in 2008, 2,055 people entered debt agreements, an increase of 36 per cent from 2007/08.
However the bulk of individuals in financial difficulty voluntarily go bankrupt.
These figures must be concerning for the government as despite the low interest rates and the government stimulus package, personal debt and personal insolvency and bankruptcy are still climbing.
A survey by St George Bank this week found that 35 per cent of respondents planned to use the one-off federal government bonus of as much as $900 to pay down their credit cards and personal debt.
Liquidation Direct – www.liquidationdirect.com.au and www.getdebtfree.com.au have been pointing to a huge increase in corporate and personal insolvency for some time now.
We operate a 24 hour insolvency advice line that is free and confidential.
The insolvency advice line is staffed 24 hours by an insolvency expert able to deal with your particular situation. Bankruptcy, Liquidation, Voluntary Administration – all dealt with 24 hours.
Call the insolvency advice line on 1300 767 525
Total Insolvency Appointments up 28% in 2008
Total corporate insolvency appointments rose 28% from 11,046 in 2007 to 14,173 in 2008.
Year               Insolvency Appointents
| 2008 | Â 14173 |
| 2007 | 11046 |
| 2006 | 12486 |
| 2005 | 11758 |
| 2004 | 10823 |
| 2003 | 10191 |
| 2002 | 10220 |
| 2001 | 10504 |
Clearly, the global financial crisis is affecting the number of insolvency appointments and it is expected that 2009 will see a further increase in the number of total insolvencies.
Liquidation Direct operates a free insolvency advice line. Call 1300 767 525 for free and confidential insolvency advice – 24 hours per day.
The banks expect 2009 to be a disaster
THE experts who manage the world economy have written off this year as a disaster they can do little about. Continue reading
Mining giants cutting thousands of jobs!
TWO†giants of the mining industry, which has been the driving force of Australian prosperity, declared their exposure to the global downturn today by announcing thousands of job cuts, including more than 2000 in WA. Continue reading
Business borrowing dries up and hard to find
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Bankruptcies hit record highs in Australia with worse to come!
THE proportion of Australians who are bankrupt or insolvent has hit an all-time high Continue reading
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