If you’re a Director of a company, but not deeply involved in its day to day operations, then you need to very swiftly turn that situation around because new laws recently passed mean that “I didn’t know” is no defence and the Tax Man can hold you personally responsible for more and more transgressions.
Now, they will be able to hold you personally liable for Your Company’s G.S.T. liabilities with this new extension of the Director Penalty Notice regime.
If you’re not on intimate terms with all the provisions of the Director Penalty Notice (D.P.N.) regime, here is a brief description that may well trigger an immediate attack of “Heartburn!”
It’s all about unpaid liabilities and previously was mainly applied to a Company’s unpaid P.A.Y.G. (Pay as you go) withholding and Superannuation Guarantee money.
This new law extends the D.P.N. regime to cover G.S.T., Luxury Car Tax (L.C.T.) and Wine Equalisation Tax (W.E.T.) taxation liabilities. And the new legislation also has extra teeth in that it allows the Tax Commissioner to estimate G.S.T. liabilities where there is a strong suspicion of “Phoenix Behaviour” or any indication of an intention to defeat creditors.
Make no mistake, the new powers contained within these new laws present significant risks for Company Directors and are amplified even more in the case of “Passive” Directors who may not have a strong knowledge of the daily goings-on in the Company.
It is not unusual for small and medium size businesses to struggle with the demand of their G.S.T. liabilities, usually as a result of cash flow pressures.
We can help you develop a better understanding of these issues…
All Company Directors… “Passive” or not…will need to develop a much better understanding of all of these taxation systems, particularly G.S.T. and the liabilities that arise, including the need for accurate and timely reporting.
This would be an ideal time for all Directors to review and fully understand the accounting system their business is using and to give themselves the opportunity to identify any processing and procedural errors which may become liabilities.
Take the first step today…call or email Alan and his INVISION Team and ask them to recommend the steps you should take to limit the Real Risk of personal liabilities arising from the errors of others.
Contact Invison Bookkeeping on (07) 3293 1436 or email us