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  • No longer a director

    If you are no longer a director, you remain liable for director penalties equal to the unpaid PAYG withholding, net GST and SGC liabilities of the company that:

    • were due before the date of your resignation
    • fell due after your resignation when
      • for PAYG withholding and net GST (inclusive of LCT and WET)), the first withholding event in the reporting period occurred before your resignation
      • for SGC liabilities, the date the charge became payable.

    Example

    On 2 June 2020, Gabrielle became a director of the 123 Pty Ltd (the company). To avoid becoming personally liable for a penalty amount, Gabrielle has 30 days starting on the day of her appointment to do one of the three required actions:

    • cause the company to pay the debt
    • appoint an administrator under section 436A, 436B or 436C of the Corporations Act 2001
    • have a liquidator appointed to wind up the company.

    On 13 June 2020, Gabrielle resigns from being a director of the company.

    On 1 July 2020, the company did not pay the amounts, nor did the company enter administration or liquidation. Although Gabrielle resigned from being a director of the company within 30 days of her appointment, she did not cause the company to do one of the three required actions within those 30 days. As a result, she incurs a director penalty at the end of that 30th day.

    End of example
      Last modified: 24 Jun 2020QC 44005