7-Eleven

In Australia company directors are, amongst other things, personally liable for company ATO matters such as unpaid and unreported Pay As You Go (PAYG) withholding or Superannuation Guarantee Charge (SGC) amounts.

Director penalties include

1. Being charged with a criminal offence with a penalty of up to a maximum of $200,000, or imprisonment for up to five years,

2. Being charged with contravening a civil penalty provision (penalties up to $200,000)

3. To be personally liable to compensate the ATO and other parties for any losses

4. To be prohibited from managing a company in any capacity.

Personally I’d like to see a tick box list on company tax returns where the directors confirm that the company has complied with all sorts of government regulations such as:

1. Having satisfied all minimum wage regulations

2. Having satisfied all fringe benefits compliances

3. I’d even throw in unfair dismissals regulations because current penalties are laughingly small and not taken seriously.

4. And a long list of other dubious and common company activities

Then, if found in breach, the directors would be on the hook for having made false declarations as well as for the original offense.

They’d be up for financial reparations and both criminal and civil charges.

That’d fix things in one year, flat. Just one little page of director’s declarations.