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The director penalty regime and its extension to GST
Published on 01 Apr 20 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
With effect from 1 April 2020, company directors will have a heightened risk of being made personally liable for their company’s outstanding tax liabilities. Pursuant to the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020, which received royal assent on 17 February 2020, the director penalty regime has been extended to make company directors personally liable for unpaid GST (including luxury car tax and wine equalisation tax). The measures, which were introduced as part of the government’s ongoing reform of Australia’s corporate insolvency regime, will impact many company directors as it is very common for businesses to have GST debts. It is critical that directors ensure that all business activity statements and GST returns are lodged before the statutory lockdown date, to ensure that they can achieve remission of their personal liabilities by placing the company into administration or appointing a liquidator.
Author profiles
James Donoghue
James is a Partner in Rigby Cooke Lawyers’ Corporate & Commercial practice group. He joined Rigby Cooke Lawyers in 2015 after working in Perth, Singapore and Jakarta. James has over 25 years of experience in managing large corporate and project development transactions, from inception to completion, both within Australia and overseas. His specialist expertise extends to M&A, project development transactions and international investment across a range of industries, including mining, energy, finance, hotels and agriculture. James’ clients appreciate his in-depth legal and industry knowledge, and his desire to understand their individual needs. - Current at 28 January 2020
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