Queensland Law Society has noted that the Australian Taxation Office is using the appointment of restructuring practitioners under the Corporations Act 2001 (Cth) to recover arrears of tax, sometimes in place of entering into payment plans with taxpayers.
Being a director of a corporation (whether or not an incorporated legal practice) that is under ‘restructuring’ or that has made a ‘restructuring plan’, or is being wound up under the simplified liquidation process, is a ‘show cause event’ under the Legal Profession Act 2007 (Qld) (the Act).
Practitioners are reminded of their obligation to declare show cause events, by giving notice to the Society under section 68 of the Act (in Form 7) within seven days of the event occurring.
Also see these QLS Proctor articles:
Impact of Corporations Act 2001 (Cth) amendments on practitioners – show cause events
Amendment to the Legal Profession Act 2007 – additional suitability matters and show cause events
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