Phoenix Companies - Part 3
Benefits of the new scheme
Although it is difficult to quantify the benefits and costs of these proposals, it is considered that on balance, the new laws will provide a net benefit for the community, economy and most importantly employees. The benefits will be based around improved tax compliance by companies and reduced incentives for companies to undertake fraudulent phoenix activity. Improved compliance will provide benefits for employees, with regard to access to superannuation guarantee amounts and the community through improved collection of tax debts. The costs, for the most part, are for companies who would be actively seeking to avoid their tax and superannuation obligations to gain an unfair competitive advantage. The measures are expected to even the playing field for companies that comply with their tax and superannuation obligations; these companies are not expected to bear any additional costs from these proposals.
Obligations on directors
Director's must now be aware of the stricter regulation that have been enacted since 29 June 2012 when the new laws were introduced. It is imperative that directors ensure that their business practices are up to date in order to comply with current statutory standards. There is no excuse for company director's to not fully aware of their PAYG and Superannuation obligations. Director's need to implement and update workplace systems that ensure they have paid any outstanding PAYG or Superannuation liability before the end of the three (3) month period and risk incurring personal liability for debts. Companies with significant PAYG tax and Superannuation liabilities should try to settle the amounts immediately.
We are here to assist your company to adhere with the new laws and ensure that you are able to meet your PAYG and Superannuation obligations without director's being personally liable for your company's debts. If you need to discuss your situation, contact usBack