So you have been running your business through a company structure for years and still believe that it’s the best way to operate? Perhaps your accountant set you up in a company and you’re not sure of your obligations as the company director? Well the times are a changing.
The tax laws were amended on 29 June 2012 to increase the personal liability of company directors and their associates. Company directors can now be held personally liable for:
– Unpaid employee super
– Unpaid PAYG withholding tax
– Payment of PAYG withholding non compliance tax
You’re probably thinking that you would just place your company into liquidation or administration to get out of paying any debts right? Well you would be wrong. The recent changes don’t allow for the above debts to be discharged upon liquidation, they merely transfer to you personally. Say goodbye to the house!
The recent changes are a welcome relief for employees across the country who have previously been ripped off by unscrupulous bosses that haven’t paid their super over the years.
If you are a business owner who runs their business through a company and haven’t heard of the above changes to the law, then you need a new accountant. Company structures don’t offer the same benefits they did 20 years ago.
