Big Brother for Directors is here
Are you a director, A.K.A bigwig, VIP, hotshot, chief or head-honcho, of a company?
Whatever terminology floats your boat if you’re leading the pack it’s important to be aware of what’s on the line to walk in those shoes.
For the few bigshots that deliberately set out to defraud the ATO, as always they’ve ruined it for the rest of us, enter the Director Penalty Regime.
So what’s this regime about? Well basically if you’re a Director you can be held personally liable for the shortcomings of the organisation(s) of which you partake in as a Director.
Personally liable for what exactly? Originally just for PAYG and Superannuation Guarantee but recently this has been extended to include GST, luxury car tax, wine equilisation tax and in certain circumstances the organisation’s debts in those areas and others.
Remember the data matching we spoke of a little while ago? Well there’s a new system especially for bigwig’s referred to as a DIN or what we like to call Big Brother. Each chief will be branded with a unique identification number (DIN). The ATO and ASIC will then monitor their respective activities – yeah we know, it’s a bit creepy.
It’s a lot to take in, a little daunting, and it imposes a lot of responsibility on shoulders especially because it can impact your personal credit applications, but as always awareness is key for these matters.
So what can you do to ensure you’re in Big Brother’s good books?
First and foremost pay those bills and don’t just pay them, do it on time.
Secondly and imperatively, pay close attention to your organisation(s) operations including but not limited to:
- How business activity statements are prepared and the liabilities of such statements;
- An understanding of the general financial health of the organisation(s); and
- Establish internal controls to manage and maintain compliance.
After all it’s all about trust. If you can establish that it’s smooth sailing for everyone.
We are able to assist with a health check if you have any immediate concerns.
Author: Jessica Pol