GST Point-in-Time Service Updates

The GST Point-in-Time Service has been updated to include the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) (Act 6 of 2020).

Act 6 of 2020

Schedule 1 to the Act introduces new phoenixing offences to prohibit creditor-defeating dispositions of company property, penalise those who engage in or facilitate such dispositions, and allow liquidators and ASIC to recover such property.

Schedule 2 to the Act ensures directors are held accountable for misconduct by preventing directors from improperly backdating resignations or ceasing to be a director when this would leave the company with no directors. This will reduce the incidence of illegal phoenix activity and its effect on employees, creditors and government revenue.

Schedule 3 to the Act allows the Commissioner to collect estimates of anticipated GST liabilities and make company directors personally liable for their company’s GST liabilities in certain circumstances.

Schedule 4 to the Act authorises the Commissioner to retain tax refunds where a taxpayer has failed to lodge a return or provide other information to the Commissioner that may affect the amount the Commissioner refunds. This ensures taxpayers satisfy their tax obligations and pay outstanding amounts of tax before being entitled to a tax refund.

These amendments have been updated in the Point-in-Time GST Service current to 23 February 2020. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.