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Red Alert for Directors and Accountants

08 June 2016

Directors’ penalties are extended to unpaid superannuation guarantee and unpaid PAYG.

Directors and their associates are now liable to a PAYG withholding non-compliance tax – thus reducing credit entitlements – when a company has failed to remit amounts withheld.

Associates (for example a spouse) can be held personally responsible for a company’s unpaid PAYG and superannuation if they don’t:

  • Influence a director to pay outstanding tax, or appoint an administrator or liquidator
  • Report the director’s non-payment of tax to the ATO, ASIC, the police or the appropriate Minister

Directors are now personally liable for their company’s unpaid superannuation guarantee charge, including superannuation related to the quarter ended June 30, 2014 which had a lodgement date of 28 August 2014.

The company debt becomes the director’s personal debt.