Correctly taxing director remuneration should be relatively straightforward provided that the benefits that are provided to the directors are appropriately identified and categorised. Whether benefits provided to a director who is a significant shareholder or a founder of the business are provided ‘in respect of employment’ may be controversial. 

In the small business sector there may be the added complexity of family members acting as directors of the corporate trustee of a trust which carries on the business as well as being actively involved in the business. The family setting may encourage in the directors a sense of entitlement to trust assets.  

While there may be transparency with a larger company, they are not immune from directors being able to obtain personal benefits at the company’s expense. Often these benefits are taken as an entitlement due to the important role of director. 

In this session we consider, among other things: 

• directors as employees – even if they are at personal risk 
• leave entitlements 
• PAYG obligations 
• Superannuation guarantee obligations 
• Fringe benefits and the deeming rule in s. 137(1) of the FBTA Act 
• remuneration if the individual fills multiple roles  
• FCT v SEPL Pty Ltd as trustee of the SFT Trust [2025] FCA 581 
• Starrim Pty Ltd v FCT [2000] FCA 952 
• can a director be paid just in dividends? 
• MT 2019 – shareholder employees of family private companies and directors of corporate trustees 
• Personal risk of directors for certain tax liabilities of the company 
• Deductions to which a director may be entitled in their individual tax returns

This webinar will be presented by one of TaxBanter’s experienced tax trainers.