TO debt is split into 4 main general areas – 1. GST 2.Income Tax 3. PAYG 4. Superannuation.
The first two attract no personal liability whilst the last two may expose Directors for personal liability.
- GST and Income tax are company debts and at no stage are they ever a Director’s personal liability. If you have this type of debt and place a company into Liquidation, you are not directly personally liable for these specific debts.
- PAYG and Superannuation is a little more complicated. It all comes down to whether you lodged your BAS and superannuation lodgement returns on time, and if you have received a Director Penalty Notice. If you have not lodged BAS and superannuation lodgement returns, or have lodged these late, or received a DPN – call us straight away, and we can advise the options available.
There are a number of solutions to working through this – so that NO – the ATO will not take your house, but you need to get advice NOW.
The best way to sort through insolvency issues to get on the front foot immediately – as once legal action starts, it is very difficult to slow it down or stop it.