Geelong company directors and taxation compliance

Are you a director of a company? If you are, you need to ensure that you have a sufficient understanding of accounting procedures and matters to adequately fulfil the responsibilities that come with the role.

The Corporations Act sets out the requirements a company director must meet when the role is taken on. A director must be “honest and careful in their dealings at all times and to know what the company is doing.” So even if you appoint an agent such as an accountant or lawyer to carry out some or all of the directorial duties, it is important to remember that you, not the agent, are the one who is held accountable for all legal obligations that apply under the Corporations Act.

Are you aware that you also have a duty to “identify, assess, monitor and approve” substantive and material taxation issues that affect the company? The Australian Taxation Office applies severe consequences where this is not done. There have been circumstances where directors have been held legally responsible for a company’s tax debts, even where the failings have been inadvertent.

If you have been asked to take on a role as a company director of a business, CD&G Accountants can advise you on your responsibilities, what these responsibilities mean and what you need to do to fully comply with them. If you are a director or have been asked to take on a role as a director in a company in Geelong, taxation and compliance issues must be adhered to and CD&G have the expertise and knowledge to help you.