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.
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