Director Penalty Regime for GST

Legislation has been passed by parliament on 17 February 2020 that enable the ATO to seek recovery of unpaid GST of a company from its directors. This new law applies from 1 April 2020.

For un-lodged Activity Statements, the ATO can now estimate the entity’s GST and require the amount to be paid within 21 days otherwise the director will become personally liable for the debt.

Recommended Action

Directors should ensure now that they:

• Are aware of the GST affairs of their company
• Identify any potential risks or exposure
• Ensure that the company has adequate controls around its GST accounting and BAS preparation processes
• Are aware of any un-lodged Activity Statements
• Assess who is the most appropriate person to be the director

The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.

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