NSW Am I Personally Responsible for Company's GST Tax Debt?

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oliviat

Active Member
15 February 2017
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0
31
I have been in bankruptcy for 2 years now. My trustee is very hard to deal with. They either don't answer questions or take months to do anything.

I was a director of a company which was liquidated but I had to go bankrupt because of personal guarantees. There was a company GST tax debt. Am I personally responsible for this debt?

The trustee will not give a definitive answer to this. There were three partners in the company. I can't get any help from the trustee on this and they don't seem willing to help either. Am I able to ring the ATO and ask them directly, and if I am, can I make an offer of payment for my share of the debt instead of the whole debt?

Also, the trustee has not made any movement on selling properties. They say it takes a long time to get information on the properties, I can't see how. I have managed to get all the information on the properties in a couple of days. They also said they hold properties for as long as twenty years.

I know that this is true but does it usually happen that way? If that is the case, I might as well give it all up because I am at retirement age and will spend the next twenty years paying mortgages that I will get very little out of.
 

settle

Well-Known Member
4 February 2017
65
6
224
GST is unsecured debt and directors are not personally liable for it so you don't need to worry.

The system is designed for liquidators to drag things out they work at a slow pace to justify there fees and rip clients off

If you feel your not getting answers complain to this body:

Companies Auditors and Liquidators Disciplinary Board
 

settle

Well-Known Member
4 February 2017
65
6
224
The opinion re gst debt I'm giving is as a tax agent so be rest assured that gst is unsecured debt and is part of the liquidation and gets written off

You may be referring to payg withholding and super, directors are now personal liability for that but don't stress about if the ato haven't issued a directors penalty notice for it
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
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Gold Coast, Queensland
lawtap.com
Take this with a grain of salt, as I'm not an insolvency practitioner. My understanding is that, generally speaking, company tax debt (including GST) is an unsecured debt in bankruptcy for which directors are not personally liable unless it was incurred by continuing to trade in insolvency. I've seen liquidators make a claim against directors for perceived insolvent trading simply because a BAS was lodged after the date of insolvency for GST incurred on sales prior to that date.

I also understand settle is correct regarding PAYG withholding and superannuation.
 

oliviat

Active Member
15 February 2017
7
0
31
This is the answer I received from the trustee:

"I confirm receipt of your email. I confirm that the ATO has submitted a Proof of Debt in your administration for Running Account Balance Deficit Debts as you were the Trustee for the [Redacted by Moderator] (ABN [Redacted by Moderator]).

Yes the ATO can claim this amount in your bankrupt estate. "
 
Last edited by a moderator:

settle

Well-Known Member
4 February 2017
65
6
224
This does not mean you are personally liable for the debt and doesn't clarify what the debt is made up of

To be honest you are stressing for nothing
 

oliviat

Active Member
15 February 2017
7
0
31
It is a bit hard not to stress when I am not sure what will happen. There is a lot of money involved in this.