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Exposure Draft - Tax Law Amendments to Strengthen Company Director Obligations and Deter Fraudulent Phoenix Activity


Tuesday, 5 July 2011

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The Assistant Treasurer has released for public consultation an exposure draft of legislation (and associated explanatory memorandum) which amends the tax law to better protect workers' entitlements to superannuation, strengthen director obligations and enhance deterrence of fraudulent phoenix activity. The main aspects of these amendments involve:

  • expanding the director penalty regime to superannuation guarantee amounts;
  • enabling the Australian Taxation Office to commence recovery of a director penalty without providing a 21 day grace period where the company's unreported debt is over 3 months old; and
  • restricting access to Pay As You Go withholding credits for company directors and their associates where the company has failed to pay withheld amounts to the Commissioner.

These amendments were announced in the 2011-12 Budget as confirmation of a 2010 election commitment of the Gillard Government.

While these amendments aim to deter fraudulent phoenix activity, they apply more broadly to extend the personal obligations of company directors to ensure that the company complies with its PAYG withholding and superannuation guarantee obligations.

Making a submission

Interested parties are invited to comment on the exposure draft. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Monday, 1 August 2011

Address written submissions to:
The General Manager
Business Tax Division
The Treasury
Langton Crescent
Email: phoenix_companies@treasury.gov.au

For enquiries, please call Haydn Daw on (02) 6263 2789.

Documents Available:

Acrobat (PDF) documents

 Acrobat (PDF)

Consultation Summary  32.85kb
Exposure Draft Legislation  115.79kb
Explanatory Memorandum  165.81kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Consultation Summary  868.76kb
Exposure Draft Legislation  4,858.81kb
Explanatory Memorandum  521.47kb

Related Items:

Submissions: Exposure Draft - Tax Law Amendments to Strengthen Company Director Obligations and Deter Fraudulent Phoenix Activity - 18/10/2011

Treasury received thirteen submissions in response to the consultation on exposure draft legislation to Strengthen Company Director Obligations and Deter Fraudulent Phoenix Activity. The submissions that do not contain confidential material are listed below and are accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

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