Last month, the Commonwealth Parliament introduced new legislation, a ‘safe harbour’ exclusion from civil liability for directors faced with insolvent trading claims.
The new laws allow ‘safe harbour’ if you start developing one or more courses of action that are reasonably likely to lead for a better outcome for the company than liquidation.
Several conditions must be met, some of which include meeting tax reporting and super, and employee’s tax obligations.
It is strongly recommended that you seek advice from a liquidator.
This policy was one of Malcolm Turnbull’s ideas when he was elected Prime Minister and is very welcome by TaxAssist Accountants.
A visit to your accountant can give you some understanding and a recommendation to a liquidator.
Contact us for a second opinion at TaxAssist Accountants in Sydney, Mid North Coast, or Gold Coast.
By Terry Murphy
Last updated October 2017