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(USGovernment-News.Com, August 16, 2012 ) Sydney, Australia -- Recent tax law changes are expected to have a tremendous impact on the level of personal liability directors of companies are facing in the eventuality of business failure. Passed into law on the 29th of June, 2012, these changes give greater powers to ATO and increase the ways in which company directors can and will be held personally responsible for their companies’ unpaid superannuation and PAYG taxes.
The recent changes to the Director Penalty Notice will not only have a direct effect on multimillion dollar companies or global brands, but they will affect directors of companies of all sizes, including self-employed tradesmen, family-owned and operated small businesses or shop owners.
Considered to be fundamental to sustaining a healthy market and supporting wealth creation, entrepreneurship and commercial risk taking have always been supported by the corporate law in Australia. However, the recent changes in tax law will immediately lead to less interest in starting and operating a business, especially small and mid-sized businesses, trend which will shortly be reflected in all aspects of the economy, from GDP growth to unemployment.
Essentially, under the new laws a director continues to be held personally liable for unpaid superannuation and PAYG taxes, but now liability is extended, there are no viable exit strategies left and harsher time limits are applied. Under the new provisions, company directors are unable to avoid personal liability if the company they run has failed to pay its PAYG tax obligations and report it to the ATO for more than 3 months after deadline. The changes are also retrospective and the director penalty notice can now affect relatives or associates of the company director.
“The retrospective nature of these changes means the law will start impacting businesses from their next tax lodgment dates. There is no time to wait”, says representative of insolvency Experts advising business owners and managers to resort to professional insolvency advice if they want to gain a better understanding of the tax law changes and the ways it can impact their business.
Qualified to undertake any type of personal or corporate insolvency appointment, The Insolvency Experts can advise about company liquidation and viable alternatives, bankruptcy, debt agreements and others: "My client had received a Director Penalty Notice that was expiring that day. Steve explained the risks to her personally and had the company into liquidation within 2 hours, how easy and what great service!" says Donna, who had the chance to bypass the complicated legal maze with the help of Insolvency Experts.
About InsolvencyExperts.com.au Insolvency Experts are registered liquidators, administrators and bankruptcy specialists. They provide essential insolvency services, help with company liquidation and bankruptcy, ensuring the best decision is being made. As insolvency laws can be particularly complex, business owners need a trustworthy partner on their side, and the InsolvencyExperts.com.au provide 24/7 specialized help and assistance for both individuals and companies.
Contact Information:
insolvencyexperts.com.au Level 2 56 Clarence Street Sydney, NSW 2000 Australia
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