Stressed employers miss super guarantee payments
A number of Australian employers who have found themselves financially stressed as a result of the global financial crisis have fallen foul of the Australian Taxation Office (ATO) by failing to meet their pay-as-you-go (PAYG) withholding tax and superannuation guarantee obligations.
ATO second commissioner, Bruce Quigley, has told a Tax Institute conference that of the 6,013 high-risk employers reviewed under the ATO's so-called Employer Obligations audit program since 1 July last year, over 4,600 had not complied with their PAYG withholding obligations, and almost 3,000 had not met their superannuation guarantee obligations.
He said that evidence suggested when times were tough businesses were tempted to cut corners to stay afloat and prop up their cash flows.
"When businesses start to experience difficulties, they should contact us as soon as possible to work out a better, fairer strategy to address their financial problems," Quigley said.
"Using money that is an entitlement of their employees is not the answer, and is only going to land them in hot water down the track."
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
