Your new-director tax handover stops before the latest trading period

The handover was accurate at an earlier date

A hypothetical new director receives a tax summary showing no overdue balance. The summary was prepared before a busy trading period, and the accompanying bank records stop at the same date. It may accurately describe an earlier position without establishing today's position. Identify the missing period immediately and obtain advice rather than treating the handover as a current clearance.

Put dates beside each record

Record when the summary was prepared, the periods it covers and the date of the underlying account information. Distinguish a document's download date from the reporting period it describes. Keep the original summary intact. Ask the authorised tax agent what additional records are needed to bring the review through to the present.

Assess the current position promptly

ASIC's director guidance emphasises staying informed about the company's financial position and obtaining advice when difficulties arise. Give the adviser both the old handover and the missing-period list. This article does not calculate new-director penalty exposure or a response deadline. Those questions require the appointment details, tax records and timely specialist advice.

Source: ASIC: Insolvency for directors

Check activity after the cut-off

In the hypothetical example, the company hired additional staff after the summary date. Ask the authorised advisers to reconcile relevant payroll, superannuation, lodgment and payment records for the later period. Do not infer compliance from a payroll expense total alone. Record what has been verified, what is awaiting confirmation and who is obtaining the evidence.

Avoid replacing evidence with another assurance

If somebody says nothing material changed, ask which records support that statement. The request can remain factual and respectful. A current account extract may still need explanation alongside outstanding reporting obligations or notices. Send any formal notice to the adviser immediately rather than waiting for the missing-period reconciliation to be completed.

Set a clear end point for the handover

Ask for a dated account of what has and has not been checked, then obtain advice on unresolved matters. CRP can help organise the financial information. The practical improvement is a handover with a defined coverage period and visible gaps, so an earlier clean position is not mistaken for a current assessment.