Published on 01 Jul 12
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The federal government’s policy of strengthening the existing framework between directors in their personal capacity and the tax and corporate law obligations of the companies they represent is reflected in two amending Bills introduced into parliament in October 2011 and the announcement in April this year of proposed amendments to increase the scope of the director penalty regime. Although the Bills reflect the government’s intention to target “phoenix activity”, the amendments will apply to all company directors (not only those involved in phoenix activity) and will increase the scope for directors to be personally liable for the tax failings or oversights of their companies. The proposed amendments are in addition to the existing director penalty regime.
This article outlines the existing regime regarding directors’ liabilities in respect of their companies’ tax obligations, and highlights recent developments and proposed amendments to the director penalty regime.
Ashley is a Director at PricewaterhouseCoopers. Before joining PricewaterhouseCoopers he was Senior Assistant Commissioner in the Financial Services Industry Group in the ATO. He had 20 years experience in the ATO and was responsible for income tax issues in the financial services industry, including delivery of the compliance program, provision of advice, law reform and managing the ATO’s relationships with the banking industry.
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