We often have a business client or an individual come to see us with one or more mystery notices from the Australian Taxation Office, their bank or their creditors. The notices contain lots of small print, intimidating language and tight deadlines for action. Too often, days or even weeks have passed before we see the notices because they have been sent to the client’s accountant initially, which ís commonly the registered office for the company behind the business, or the client’s tax agent. Or, quite frequently as well, the notices have arrived and been put straight in the client’s “too hard” or “rainy day” basket.
The notices turn out to be Director Penalty Notices from the ATO (a precursor notice to directors of a company that the ATO intends to recover from them personally the company’s PAYG withholding and/or SGC liabilities), a formal demand from the bank before possession action is taken regarding mortgaged property, or a creditor’s statutory demand for payment of a debt. With the latter type of notice, the company behind the business will be presumed to be insolvent if the demand is not dealt with in the 21 day period. That can lead to winding up proceedings being brought against the company.
In short, these types of notices are serious and need to be actioned as soon as they are received. Advice from experienced professionals should be sought and lines of communication opened with the party that has issued the notice. Otherwise, the future of the business, the company or individual behind it, and the personal assets of the company’s directors can be put at risk.
Keep those “too hard” and “rainy day” baskets empty, and ensure you have a good understanding with the registered office for your company to get such notices to you as soon as possible.
There is always a solution that can be fashioned if such notices are acted on early and proactively. At Everingham Solomons we will work with you to find the solution because Helping You is Our Business.
Click here for more information on Keiran Breckenridge.