Professional Anti-Competitiveness, Water Management, Personal Responsibility & GST Fraud

Garrett Walmsley Madgwick wishes their friends and clients a happy new year.
Welcome to the January 2004 edition of this Law Update Newsletter, informing friends and clients of GWM Lawyers and Conveyancers of changes in the law that might impact on their personal or business lives.

AT YOUR OWN RISK - Personal Responsibility Laws

New South Wales has new personal injury laws which make it clear people are largely responsible for their own safety when they engage in activities that could be dangerous. The new laws limit legal liability where an injury is due to an obvious or inherent risk.

Under the new laws, someone who is injured is presumed to have been aware of an obvious risk, unless he or she can prove they were not aware of it. "Obvious risks" include ones that are clearly apparent or a matter of common knowledge.

There is now no general obligation to give warnings about obvious risks, unless someone specifically asks for advice about them, or unless the risk is associated with professional services you are supplying, and the activity could cause death or personal injury.

There is also no liability for harm suffered as a result of an activity with an inherent or in-built risk, which is one that cannot be avoided by the exercise of reasonable skill and care.

If a case goes to trial, a court can now apply a 100 per cent reduction to any claim depending on the extent to which it decides the injury was caused by the person's own actions or negligence.

The new laws make people more responsible for their own safety when undertaking recreational activities, particularly for hazardous ones and in situations where risk warnings are given. Signing a waiver document where you acknowledge the risk and relinquish certain rights before undertaking a recreational activity will now also be more binding and will have the effect of limiting the liability of organisers.

Dangerous recreational activities are sports or pursuits engaged in for enjoyment and involving a significant risk of physical harm. The new laws apply whether or not the injured person was aware of the risk. The test will be that the risk was obvious to a "reasonable" person.

Just how the new laws will be interpreted by the courts remains to be seen, and your solicitor is best placed to advise you on your rights and obligations if you are injured, or if you are involved in a business or organisation which conducts or provides facilities for activities which might be considered dangerous.

For information and advice on this area of law, we invite enquiries to Bob Gillroy at GWM Lawyers and Conveyancers. Bob can be contacted by email or on 6583 5266.

GST Fraud - now they're putting them in gaol

The ATO is turning up the heat on businesses particularly in respect of GST compliance.

As was predicted by Bob Gillroy of GWM Lawyers at the time of the successful GST Seminars presented by GWM in Port Macquarie during late 2003, the Australian Taxation Office has embarked upon a program of increased policing of GST practices.

In Brisbane a former company director has been gaoled for 6 years for a series of frauds against the ATO and 4 major banks.

The former director pleaded guilty to 8 charges of attempting to defraud the Commonwealth of $725,245.00 over a 5 month period in 2001. The former director also pleaded guilty to charges of operating false bank accounts over a 4 year period and to defrauding various banks of approximately $270,000.00.

The ATO has taken on an aggressive stance with regard to GST compliance. The ATO identified the former director who was recently gaoled as a compliance risk following the identification of a trail of false documentation that he had used to set up businesses and claim input tax credits. The Commissioner has identified investigating fraudulent GST claims as a high priority for the Tax Office.

It is incumbent upon all responsible business proprietors to ensure strict compliance with the requirements laid down for GST related matters. It is equally important for non-active directors in companies to ensure that there are procedures in place so that they can rest assured that their interests are not being prejudiced by way of ruthless dealings of the senior executives of companies or fellow directors. If you are a director, if there is non compliance, then you are liable. The only way to establish that you are not liable is to prove conclusively that you had no knowledge and under the present law at this point in time the mere fact that you are a director will prima facie indicate to the courts that you are a party responsible and therefore liable both for penalty and for payment of the outstanding amounts.

Disclaimer
The contents of this email newsletter are designed to provide basic information on changes in the law only. The information provided is an overview of the changes mentioned and, as such, is intended as an alert rather than as advice to take any specific action. Nothing contained in this email, therefore, should be taken as legal advice and no specific action is advised in relation to any particular circumstance. Detailed questions are welcome either by email (info@gwmlaw.com.au), by letter (PO Box 753 Port Macquarie 2444) or personal appointment (phone 6583 5266).

For further information regarding any of the changes to the law mentioned in this email contact GWM Lawyers and Conveyancers at info@gwmlaw.com.au by email, write to us at PO Box 753 Port Macquarie 2444 or phone for a personal appointment on 0011 61(0) 2 6583 5266. You may also go to our website www.gwmlaw.com.au, click on "Areas of Law" and follow the email links to one of our expert staff.


	Expert Legal Advice CALL NOW: (+61) 2 6583 5266 1300 659 390 (NSW & ACT) GWM Lawyers and Conveyancers, Australia