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Director’s Responsibilities and Implications for PAYG and SGC

Are you a company Director? If so, are you aware of your PAYGW and SGC obligations?

There are potentially harsh consequences for Directors failing to lodge Corporate PAYGW returns (i.e. BAS/IAS) and SGC statements on time.

As a Director, if you fail to lodge those returns within 3 months of the required lodgement date you will automatically become personally liable for the amounts due should those liabilities fail to be paid by the corporate entity.

In the event you do not meet your obligations, the Australian Taxation Office (ATO) may issue a “locked down Director Penalty Notice”. This notice advises action will commence against you, the Director.

Previously, personal liability could be avoided by the appointment of an Administrator or Liquidator. This defence is no longer available unless the returns are lodged on time.

If you are responsible for lodgements of BAS/IAS and or SGC statements, it is essential you ensure these lodgements are made on time.

What should you do if you receive a Director Penalty Notice?

In the event you receive a notice, you must act immediately to address the matter. Please contact us to discuss possible remedies and an action plan.

written by:

McKinley Plowman