Wednesday 10 Aug 2022
*

Latest Accounting News
Hot Issues
Sub-trusts ‘redundant’ under final Div 7A ruling
Tax Office homing in property deductions, SMSFs warned
ATO adds indebted sole traders to credit referrals
State and Federal Covid support --- Aug 2022
ATO casts net wide when it comes to taxable business income
Largest natural gas produces by country from 1970-2021
NALI ‘a special problem for SMSFs’
Tax time tips
Census 2021 Data
Single Touch Payroll: Phase 2 deferral reminder
Largest inflation rates by country in Oceania
Write a business plan
Be wary of trust disclaimers, ATO warns
Tax time guide offers path through 100A
Car allowance increase ‘welcome news’
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
ATO zeroes in on work expenses, crypto investments
Forget the Tim Tams in your WFH claim, say ‘fun police’
Inflation will force a third of businesses to raise prices
Year-end tax planning
World GDP Ranking (1960~2025)
100A ruling ‘turns tax avoidance logic on its head’
Company directors must register - all you need to know
Be alert for phoenix activity, businesses told
Equifax signs data agreement with ATO
E-invoicing will reduce emissions, says PwC
Largest cities in the world 1500 to 2100
Last chance to claim the loss carry-back
Changes to recovery loan scheme for small and medium enterprises
About the cash flow forecasting template
Articles archive
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 2 April - June 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 April - June 2005
Quarter 2 April - June 2004
Quarter 1 January - March 2004
Quarter 4 October - December 2003
Quarter 3 July - September 2003
Quarter 4 October - December 2001
ATO puts 50,000 directors on notice.

The ATO is sending its strongest message on debt enforcement since the pandemic, says Grant Thornton.



 


The Tax Office is warning tens of thousands of directors to take action on company tax debts or face the risk of full enforcement action.


Grant Thornton financial advisory partner John McInerney estimated the ATO has sent out 50,000 alerts warning of imminent director penalty notices this week alone.


“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,” Mr McInerney said.


To avoid personal liability a director has to pay the debt or put the company into liquidation within 21 days of the date on the notice.


Other options include appointing a small business restructuring (SBR) practitioner or putting the company into voluntary administration (VA).


Mr McInerney said the ATO had been supportive of formal debt restructuring proposals (SBR and VA) where it could demonstrate that the underlying business was viable – a stark contrast to its pre-pandemic position.


“When companies have undergone the restructures, in many cases up to 90 per cent of the value of the company debt has been wiped,” he said.


But the ATO had also recently made some key changes to the DPN regime, including the removal of a “payment plan” option, which meant company directors would be personally liable for company tax debts after receiving the DPN.


Mr McInerney said the DPN program had been extended beyond PAYG to now include unpaid GST, superannuation, wine equalisation tax and luxury car tax.


“The notices are being sent to the last known address of the company’s directors as disclosed on a search of the records of ASIC,” he said.


“If the director has not advised of an updated address they will be personally liable 21 days after the DPN is issued.”


He said if the DPN went to the correct address but a director took a “do nothing approach”, they would still be personally liable after 21 days.


 


 


 


Tony Zhang


04 April 2022


accountantsdaily.com.au




26th-April-2022
        
89 Boronia Road Boronia Vic 3155 Phone: (03) 9762 5400 Fax: (03) 9761 1327