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December News - Are you a Director of a company?

12-Dec-2011

ICB bookkeepers Network Meeting Report – 2

“Are you a director of a company? Or ever been one?”
You may want to read on:
During the last 5 minutes of their time – our guest speaker Robert Moodie –Insolvency Expert- gave us some information which will be of interest to anybody who is a director or was a director of a business :
A new Income Tax Law has been passed by the Zenith and is at present in front of parliament.  So this will come- it is only a matter of time. AND it will be backdated to 30.6.2011!

In short this new law will make any directors of a company personally liable for any GST/Super debts which are older than 3 months. They will be automatically liable and will receive the letters of demand from the ATO. Now this will happen when the business is going into bankruptcy and the ATO is looking to get their money, not during normal course of business.

However this will have an enormous impact and can lead to personal bankruptcy even to people who have been in the past directors of businesses going into insolvency now. If they have been directors at the time of the GST/Super debt being created, or once these liabilities were in the books- they will be personal liable for such debts, even though they are not any longer a director of the company.

Robert gave us a current example out of his practice where one director had resigned and written over all his shares to the other director as he had wanted to go into insolvency, but the other director wanted to sort it all out and keep going. However the business went now into insolvency. The current debt  had been paid, but not the old debts, result the ATO went after the resigned director and made him personal liable for this debt. This former director faces personal bankruptcy over this now. What a scary thought.

If you need further information relating to this you can call Robert Moodie from Rodgers Reidy.