The director penalty regime under Division 269 to Schedule 1 of the Taxation Administration Act 1953 (Cth) empowers the Commissioner to take action against an insolvent company’s directors to recover outstanding tax debts of a company. The director penalty regime was introduced as a substitute for the Commissioner’s tax priority in a corporate insolvency and was aimed at encouraging directors to take early positive action to deal with insolvency. An analysis of Australia’s director penalty regime, including the most recent reforms, reveals that the regime helps to foster a culture of good corporate governance which is fundamental to achieving successful corporate rescue post insolvency.
"Director penalty notices – promoting a culture of good corporate governance and of successful corporate rescue post insolvency,"
Revenue Law Journal:
1, Article 2.
Available at: http://epublications.bond.edu.au/rlj/vol25/iss1/2