ATO Ramping up debt recovery
Read more HERE
Indicators of Insolvency
Complimentary Insolvency Support for Bookkeepers – Read more HERE
Trusts and Trustee Assets
Secured creditors be warned: Deadline to fix PPSR registrations against Trustee Companies is fast approaching
Under the old ASIC regime, that is before the PPSR legislation, it was sufficient to register a security instrument against the Company (The ACN) that acted as Trustee of the Trust.
The security was not registered against the Trust’s ABN.
A formal determination was made which had the effect that such defective registrations, which had occurred as part of the migration process, were temporarily protected for 5 years, and therefore remained valid despite the defect, until 31 January 2017.
All secured parties who had ASIC charges registrations against companies which are or may be trustees, should satisfy themselves that their registrations are now properly recorded against the ABN of the trust.
It is also timely to remind parties that where Trust assets are the basis of the security the PPSR should be against the Trust ABN and as a belts and braces approach against the ACN.
If the registration is only against the ACN, those secured parties will be at risk of the security interests becoming ineffective.
Please feel free to ring Kim Wallman on 08 9215 7900 should you require any further assistance.
Director Penalty Notice and Locked Down Director Penalty Notice Liability for PAYGW and SGC
Directors of Corporations with unpaid AND UNREPORTED PAYGW or SGC by the due date will, after three months, be automatically personally LIABILE for those unpaid amounts. If those liabilities are unpaid, but ARE reported within three months of the due date, the ATO is required to issue a DPN and the current rules prevail. That is, Directors under these circumstances will still be able to seek relief by winding the Company up or by placing the Company into Administration and thereby avoid immediate personal liability (if done within 21 days from the date of the DPN). Directors of Companies, where PAYGW or SGC is unpaid and unreported by the due date, cannot, as was previously the case, avoid personal liability by placing the Company under Administration or into Liquidation. This latter circumstance will result in the ATO issuing a locked down Director Penalty Notice This emphasises the importance of REPORTINGwithin three months of the due date. Be aware that if PAYGW and or Superannuation Guarantee liabilities are unpaid and unreported three months after the due date then you are exposed to personal liability.