On 29 June 2012 the Tax Laws Amendment (2012 Measures No.2) Act 2012 received royal ascent. These taxation laws amendments may have serious consequences for company directors if they don't meet the requirements and are also aimed to deter companies from fraudulent phoenix activities.
The most important changes are:
- Extension of the Director Penalty Notice (DPN) making Directors personally liable for their company's unpaid compulsory superannuation contributions (CSC)
- This means that directors can't discharge their director penalties by placing the company into administration or liquidation when the PAYG withholding tax or CSC remains unpaid and unreported (3) months after the due date; and
- Directors and their associates employed by a company who have received wages from that company and PAYG was withheld, but not subsequently remitted, are no longer able to claim a credit in their tax return for that PAYG component. Further, the director or associate may be held personally liable for that component, known as withholding non-compliance tax.
Please speak with one of our team members for further clarity. Click here for a copy of the Tax Laws Amendment (2012 Measures No.2) Bill 2012.
Speak with our Newcastle Business Accountants to discuss your business om (02) 4926 2300