The Confederation of Greater Hobart Business Ltd was most concerned to receive information that will directly affect small business owners throughout Australia. A vast number of small business owners are struggling with their creditors in general – and now are in the firing line with the ATO.
Are you the director of an Australian company and that company has any ATO debt or SGC superannuation debt? The Australian Taxation Office may have you in their sights. This week alone the ATO have sent out 50,000 alerts throughout Australia to directors of Australian Companies with ATO /SGC super debt which hold strong warnings about director penalties.
IGNORE THESE LETTERS AT YOUR PERSONAL FINANCIAL PERIL: “The letters warn company directors that if they don’t actively manage their tax affairs the next communication they can expect to receive from the ATO is a Director Penalty Notice (DPN) – that could result in a director being personally liable for their company’s tax debt,” – Grant Thornton Financial Advisory Partner, John McInerney
Once a director receives a Director’s Penalty Notice (DPN) they either pay out the debt in full (payment plans are not accepted in this scenario) or put the company into liquidation within 21 days – else the director will become personally liable for all ATO monies due.
If you are a director and your address has not been updated – the 21 days still applies.
The Confederation of Greater Hobart Business Ltd Chairman recommends that any company with tax debts to get in touch with their tax agent as soon as possible to ensure they are able to deal any upcoming issues from the Australian Taxation Office.