An extension of the Director’s Penalty Notice (“DPN”) regime to GST, luxury car tax (“LCT”) and wine equalisation tax (WET”) was announced in last night’s #Budget.
All to supposedly combat #illegalphoenixactivity …
Currently, directors can be held personally liable for unpaid superannuation and PAYG liabilities:
(a) where they have lodged the relevant returns with the ATO (called a “non-lockdown DPN”); or
(b) where they have not lodged the returns for a period of 3 months (called a “lockdown DPN”).
The Budget proposes (to an unknown extent) including GST, LCT and WET to this regime.
Whether this means unpaid GST (which makes up a large part of most company liquidation debts) will attract a non-lockdown DPN needs to be closely observed by Practitioners and Directors alike.
More to come once the relevant legislation is introduced into parliament …
Thanks to Geoff Green for spotting this gem.