It is important that as company director you keep your contact details up to date with ASIC. These contact details will be used by the ATO and other entities to contact you regarding your position as Director.
As an example, Directors have a legal responsibility to ensure that their company meets and pays its pay as you go (PAYG) and superannuation guarantee charge (SGC) obligations. The Director of a company who fails to meet these liabilities by their due date automatically becomes personally liable for a penalty equal to the company’s unpaid amount.
The ATO will issue a Director Penalty Notice which allows them to start legal proceedings against the Director personally for recovery of the penalty if the penalty notice has not been paid after 21 days of the notice being sent to the director.
For the purposes of the 21 day time period, it does not matter whether the Director has physically received the notice or not, so that if the notice is sent to an old address (because that’s the address ASIC has listed on your company information) after 21 days the ATO may still commence legal proceedings against you to recover the penalty.
This makes it very important that as Director, your contact information remains up to date at all times so that if a notice is issued, you receive it and have appropriate time to pay the penalty notice or respond to it.
For more information about Director Penalty Notices go to www.ato.gov.au.
For more information on how to change your Director contact information go to www.asic.gov.au.