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Director’s Personal Liable for Good and Service Debt

Director Penalties

Do you know that the director is personally liable for Good and Service Debt, PAYG debt and superannuation guarantee debt? This means that in a company structure, normally there is a corporate veil, meaning the company debt only needs to be repaid through company assets unless the director is trading while insolvent or breaches certain obligations as a director as set by the corporation act. What are Director Penalties?

Understanding Director Penalties

In the legislation from ATO, this means that even if the director is doing everything correctly, the mere fact that those debts are from the Goods and Services Tax Debt, Superannuation Guarantee Debt, and PAYG debt, would mean that the director would be personally liable for the debt.

Lodgement Requirements

It all depends on whether you as a director had lodged the superannuation guarantee charge statement or the PAYG within 3 months from the due date, if you have, then you might be personally liable, but if you can’t afford to pay it, you might seek help from administrator or liquidation, but if you did not lodge on time, then those debts will stay with the director on a personal level.

Seeking Help with ATO Debt

If you have ATO debt and are unable to pay it, contact EndureGo Tax. As leading ATO tax debt specialist negotiators, we are here to help. We have assisted many clients in negotiating favorable payment terms with the ATO. In cases where the director is unable to repay, we work with liquidators to find feasible solutions to exit the debt without resorting to bankruptcy. Reach out to us now for assistance. Email us at