What’s your risk as a company director?

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Are you exposed as a company director? Do you know your personal obligations?

Your personal exposure to debts incurred by a company of which you are a Director – or later become a Director – is set to be widened.

Legislation expanding the Director’s Penalty Regime has now passed both houses and is awaiting Royal Assent. The DPN system will now include GST liabilities, as well as LCT and WET. These are paid as part of activity statement lodgements.

From the quarter following Royal Assent (at this stage likely 1 April 2020), Directors will have a personal obligation to ensure that the companies they run either pay their GST debts or are placed into liquidation.

The extension will mean that a Director may become personally liable for PAYG withholding, superannuation guarantee or GST owed by the company they represent.

In specific instances, New Directors are liable for historic GST (WET and LCT). If these remain unpaid 30 days after their appointment.

When being appointed, new Directors should be careful not to inherit personal liabilities.

For further information or assistance with dealing with DPN issues, please contact your advisor at BridgePoint Group.

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