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ATO can destroy Family Wealth


The Australian Taxation Office's (ATO) renewed efforts to recover tax debts, issuing nearly 200 Director Penalty Notices per week. These notices make company directors personally liable for unpaid taxes like GST, PAYG, and superannuation. This aggressive stance by the ATO could have a significant impact on a family's wealth, especially if a family member serves as a director in a company. The financial burden could extend beyond the company's assets to personal savings, properties, and investments, jeopardising a family's financial security.


Protection measures are crucial in this scenario. Families should consider asset protection strategies, such as separating personal and business assets, establishing a Family Protection Trust or building our proprietary Moat and Castle strategy, to shield their wealth from such liabilities. Legal advice from Abbott & Mourly Lawyers is essential to navigate the complexities of tax laws, asset protection laws and to set up contingency plans.


The ATO's new approach serves as a wake-up call for families to proactively manage their financial risks. Ignoring or delaying action could lead to severe consequences, including a damaged credit score, which could further affect a family's ability to secure loans or mortgages. Therefore, engagement with the ATO and protecting family wealth are more important than ever.

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