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The ATO advises that on 1 July 2012, changes were made to the tax and superannuation laws to reduce the scope for companies avoiding liabilities and payments of employee entitlements.

Commencing in late April 2013, the ATO will be sending letters to directors of companies that have unpaid pay as you go (PAYG) withholding amounts. Some of these directors may be clients of tax agents.

The letter explains the director's obligations and personal risk in relation to their company's PAYG withholding debt.

It encourages directors to ensure their company addresses the outstanding PAYG withholding debt either by paying it immediately or establishing with the ATO an agreed payment arrangement.


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