Director Penalty Notices for GST starting April 1

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Director Penalty Notices for GST starting April 1

Parliament has just passed legislation to include GST in the Diretor Penalty Notice REgime, and it comes into effect on 1 April 2020.

To recap; A Director Penalty Notice is a notice that the Australian Tax Office (“ATO”) can send to a director that can make that director personally liable, for currently, two types of tax debts of a company – Pay As You Go (“PAYG”) and Superannuation Guarantee Charge (“SGT”) liabilities. The addition of Goods and Services Tax (“GST”) to this list means that ATO will be able to pursue a company director personally for the majority of a company’s tax debt.

The now passed version of the legislation makes the new powers to pursue GST forward reaching only – so the ATO can only chase GST debts incurred in the period starting 1 April 2020 or later with a DPN.

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