Directors Penalty Notice - GST 11 March 2020

DIRECTORS PENALTY NOTICE - GST

Pursuant to the legislation passed, an extension of the Directors penalty regime will now extend to GST payments due by companies.

DPN’s can be issued where an amount is not paid on the due date. New directors become liable 30 days after their appointment where they are appointed after the due date and an amount is still outstanding. DPN’s can be remitted where the director compiles with the obligation either before the penalty is issued or within 21 days of the notice being issued. If the directors place the company into administration/winding up then this must be done within three months of the relevant due date (being the time when the net amount was due). Defences or directors penalty notices will be difficult but include illness plus taking reasonable steps.

It is therefore imperative that companies remit PAYG withholdings, superannuation obligation for employees and GST are now subject to potential liability for a director.

The take out, directors must beware especially of passive directorships with no knowledge of the business of a company to understand their relevant risk.

Superannuation guarantee Amnesty Legislation

The above legislation has now been passed.

The amnesty provides for a one-off amnesty to encourage employees to self correct historical SG non-compliance dating from 1 July 1992 to 31 March 2018. For the quarter ending starting on after 1 April 2018 or subsequent quarters you cannot benefit from the legislation.

It will allow employers to claim tax deductions for payments of SG Charge or contributions made during the amnesty period as well as reverse the administration component.

The amnesty period will start from 24 May 2018 and end 6 months from the date of royal assent.

Important: Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.