A person who holds a directorship for only one day may become personally liable for a Company’s entire Super and PAYG Withholding Tax Debt!
New Directors
New directors should be aware that they can be personally liable for not only debts incurred by a company following their appointment, but also debts due prior to their appointment.
Prior to accepting a directorship, you should make comprehensive enquiries to ensure that the company is up to date with its PAYG Withholding Tax and Super obligations.
Former Directors
Former Directors may also be personally liable for unpaid PAYGW tax and super up to the date of their resignation.
Conclusion
Talk to your Accountant before accepting a Directorship
Please seek appropriate timely advice before consenting to your appointment as a Director.