Company directors: Federal taxation liabilities and obligations when nearing insolvency — Part II.

Part I of this article was published in the previous edition of this Journal and addressed liability under the director penalty notice provisions of the Income Tax Assessment Act 1936 (Cth). Part II reviews the liability of directors to indemnify the Commissioner of Taxation in a winding up where an unfair preference constituting certain taxation payments is repaid to a liquidator by the Commissioner, for insolvent trading for unsatisfied taxation debts and for being knowingly involved in or concerned in taxation offences for the non-payment of company tax, such as income tax or GST As a company nears insolvency, the personal liability of a director for corporate taxation obligations escalates significantly. [ABSTRACT FROM AUTHOR]