The Government has introduced the Tax Laws Amendment (2011 Measures No.8) Bill 2011 into Parliament.

If passed the Bill will, amongst other things, strengthen directors’ obligations to cause their company to comply with its existing pay as you go (PAYG) withholding and superannuation guarantee requirements. These amendments reduce the scope for companies to engage in fraudulent phoenix activity or escape liabilities and payments of employee entitlements by:

• extending the director penalty regime to make directors personally liable for their company’s unpaid superannuation guarantee amounts;
• allowing the Commissioner of Taxation (Commissioner) to commence proceedings to recover director penalties three months after the company’s due day where the company debt remains unpaid and unreported after the three months passes, without first issuing a director penalty notice; and
• in some instances making directors and their associates liable to PAYG withholding non-compliance tax where the company has failed to pay amounts withheld to the Commissioner.