Director’s Liability Notices from the Australian Taxation Office
Director’s Liability Notices from the Australian Taxation Office
fails to remit deductions as required;
fails to pay an estimate as required; or
contravenes a repayment agreement made with the ATO.
The personal duty on directors to pay the tax can be enforced by the ATO through penalties equal to the unpaid amount of the company’s liability. These notices (issued pursuant to 222AOE and 222APE of the Income Tax Assessment Act) are called Directors’ Liability Notices.
If you receive a Directors’ Liability Notice, you must cause the company to pay the amount within 14 days or:
enter into a repayment agreement with the ATO;
appoint an administrator under the Corporations Act; or
prepare for the company to be wound up.
If payment or arrangements to pay are not made, the directors can be required to personally pay the Company’s tax debt.
It is always relevant to remember that the failure by directors to ensure that the company has the ability to repay debts, may suggest that the company is insolvent. If that is the case, directors may not only be responsible for taxation debts, but could also be responsible for any other debt incurred by the company at a time when the director knew, or ought to have known, that the company was unable to pay its creditors.
It is also important to remember that the above applies to all directors (whether they have control of the company, or have no actual involvement in the day to day affairs). As a director you have a duty to make yourself aware of what is happening in your Company
Directors Liability Notices from the Australian Taxation Office - To learn more about this author, visit Meredith Dorham's Website.
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Directors can be made personally liable to pay company tax if the company:
fails to remit deductions as required;
fails to pay an estimate as required; or
contravenes a repayment agreement made with the ATO.
The personal duty on directors to pay the tax can be enforced by the ATO through penalties equal to the unpaid amount of the company’s liability. These notices (issued pursuant to 222AOE and 222APE of the Income Tax Assessment Act) are called Directors’ Liability Notices.
If you receive a Directors’ Liability Notice, you must cause the company to pay the amount within 14 days or:
enter into a repayment agreement with the ATO;
appoint an administrator under the Corporations Act; or
prepare for the company to be wound up.
If payment or arrangements to pay are not made, the directors can be required to personally pay the Company’s tax debt.
It is always relevant to remember that the failure by directors to ensure that the company has the ability to repay debts, may suggest that the company is insolvent. If that is the case, directors may not only be responsible for taxation debts, but could also be responsible for any other debt incurred by the company at a time when the director knew, or ought to have known, that the company was unable to pay its creditors.
It is also important to remember that the above applies to all directors (whether they have control of the company, or have no actual involvement in the day to day affairs). As a director you have a duty to make yourself aware of what is happening in your Company
Directors Liability Notices from the Australian Taxation Office - To learn more about this author, visit Meredith Dorham's Website.
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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