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Follow on Google News | Australian Directors Become Personally Liable for Unpaid SuperannuationThe Australian government has extended provisions regarding penalties for directors.
By: Nair & Co. New Director Penalty Regime: Highlights · The director penalty regime and the estimates regime have been extended to apply to unpaid superannuation payments. · Under the new regime, directors will not be able to discharge their liabilities by voluntarily placing companies into administration or liquidation, if superannuation is unpaid or any amount withheld is unpaid and unreported 3 months after the due date. · If a business entity does not pay amounts withheld to the Commissioner, directors and their associates may be made liable. · The Commissioner now has wider scope to pursue directors for breaching obligations. · If the concerned liability is not paid and is unreported for 3 months after the due date, directors automatically become liable to pay the amount, and the liability cannot be remitted by placing the company into administration or liquidation. New Director Penalty Regime: Implication · The new regime is anticipated to protect employees' entitlements, discourage directors from fraudulent phoenix activities and improve the regulatory environment for compliant taxable entities. · It must be noted that new directors may become liable for penalties, when there is an obligation giving rise to a director penalty, 30 days after the date of the director's appointment; · Therefore, any person accepting new appointments as a director, in Australian companies should be aware of these implications and make sure they study the latest tax and due diligence reports of the company. For more information on this topic email media@nair-co.com Get the latest press releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts (http://www.nair- End
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