Large withholders and DPNs - A bridge too far?
Source: Taxation In Australia Journal Article
Published Date: 1 Sep 2016
Under the current administrative practice of the Australian Taxation Office (ATO) in relation to the PAYG withholding rules, an entity which is a large withholder according to those rules cannot notify the Commissioner of Taxation of amounts withheld unless it pays those amounts to the Commissioner at the same time. The consequence is that, if the entity is a company and a liability is not paid, the company's directors run the risk of receiving a director penalty notice (DPN) for the amount of any unpaid liability.
This article considers the interaction between the general obligations for a company that is a large withholder to withhold, notify and pay under the Taxation Administration Act 1953 (Cth) (TAA), and the DPN provisions in the TAA. It also considers the ATO's current administrative practice, and why that practice may be flawed . The article also examines a recent Supreme Court decision which considered these issues.
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Details
- Published By: Arthur Athanasiou CTA-Life, Mark Gioskos FTI
- Published On:1 Sep 2016
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