Did you know that a party in litigation can be notionally successful, but still be required to pay the opponent’s legal costs? Find out more in a recent case that MST’s employment team defended.
The PAYG Penalty can have very costly personal implications for directors of companies that become insolvent. In a recent decision, Stellar Corporate Solutions failed to remit PAYG tax to the ATO and as a result, their director was deemed personally liable for the substantial debt that was incurred. This article highlights the importance for directors to appreciate the personal finacial implications that may result from failing to pay this particular tax.
The recent appeal decision of BCI Finances Pty Limited (in liq) v Binetter  FCAFC 189 illustrates the requirement of actual acts or omissions of a director to give rise to a breach of directors’ duties. The appeal concerned the liability of Gary Binetter, the son of Erwin Binetter. Erwin, alongside his brother, Emil, had orchestrated a tax avoidance scheme to avoid paying the ATO monies which would otherwise be payable, utilising offshore funds in Israeli Banks to maximise interest deductions on the family company’s tax returns in Australia. Gary had been a director of one of the family companies involved in the scheme, and the question was whether the inference of knowledge of the surrounding facts and circumstances was enough to give rise to a breach of his directors’ duties.
Last week the Federal Court, in a proceeding brought by the ACCC, imposed a $2,604,000 penalty against Ultra Tune for contravening the Code and the ACL. These were the first proceedings brought against a franchisor alleging a breach of the Franchising Code obligation to act in “good faith” in business dealings with franchisees by the ACCC.