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Under the Income Tax Assessment Act 1997 (Cth), companies are required to withhold money, being PAYG, from wages to meet employees’ tax liabilities to the Australian Taxation Office (“ATO“). In addition, under the Superannuation Guarantee (Administration) Act 1992 (Cth) companies are required to pay a SGC.
Should a director of a company fail to meet their obligations under PAYG withholding or SGC liability in full by the due date, they will become personally liable for a penalty equal to the unpaid amount. The ATO may then issue a Director Penalty Notice (“DPN“) to collect the unpaid amount from the director and should the amount remain outstanding twenty-one (21) days after a DPN is issued, the ATO can commence legal proceedings to recover the amount.
A DPN will be issued by the ATO and sent to the address listed with the Australian Securities and Investment Commission (“ASIC“). A DPN will list the following options available to the director in order to discharge the penalty and which must be undertaken within twenty-one (21) days of the notice being issued:
The above options are however only available to a director if the unpaid amounts were reported within three (3) months of the due date. If the unpaid amounts are not reported within three (3) months of the due date, the only option available to the director is payment of the debt.
Former directors will remain personally liable under a DPN for the penalty equal to the unpaid PAYG withholding and SGC liabilities in circumstances where:
New directors can become liable under a DPN for unpaid liabilities which were due prior to their appointment. This liability will commence thirty (30) days from their date of appointment for all unpaid PAYG withholding and SGC liabilities that were due after 29 June 2012.
Therefore it is important if you are a new director of a company to make the appropriate enquiries to determine the companies compliance with its obligations under PAYG withholding and SGC liability.
If you have been served with a DPN and are unsure about your obligations, liability and available defences as a former director or new director, please contact Stone Group Lawyers today on (07) 5635 0180 to assist you in this matter.
At Stone Group Lawyers we know that in the event that you are injured at work, going through the claiming process can be complicated and stressful. Our team of lawyers are eager to help you through yourWorkCover claim and/or workplace injuries claim in the event of an incident.
If you’ve had an accident at work which has affected your health or wellbeing you may be entitled to WorkCover benefits. There are many work related injuries that may be covered by WorkCover.
Entitlements may also cover any pre-existing injuries, illnesses or diseases that are worsened whilst you are working.
WorkCover laws and entitlements vary between states so it is important that you seek the help of professional who have your best interests in mind. Time limits do apply and delays may mean that your claim will not be successful. Prompt legal action on your behalf is essential. Here at Stone Group Lawyers we are happy to go above and beyond for our clients’ needs and ensure that they receive the outcome that they desire.
To arrange an appointment about your workcover claim, call Stone Group Lawyers on 1300 088 440.
