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Companies are a unique type of legal structure in that they are a separate legal entity and provide limited liability. However, there are certain situations in which the corporate veil can be lifted and directors are held personally liable for the company’s dealings.
Unpaid tax debts can lead to serious consequences for businesses that are having problems keeping up with their tax debt. When it comes to enforcing debt, the ATO has a number of options, including pursuing wind-up proceedings in court.
Businesses that receive a wind-up notice should act quickly by obtaining professional advice. While receiving a wind-up notice is a serious and urgent matter, there could be different options available to your business and your advisors can assist with exploring these with you.