Director Penalty Notices Helpline

A director penalty notice (DPN) is served by the ATO on a director when the company that they are a director of fails to pay its tax withholding obligations.

When you receive one of these notices you have to act quickly to address the situation otherwise you may find yourself personally liable for the shortfall as well as potentially being liable for penalties. When you receive a DPN you have 21 days from the date that the notice was posted to respond to the ATO. There are primarily three options that are open to you.

• You can pay the outstanding tax either in full or in instalments via
  a payment arrangement with the ATO.
• You can place the company into voluntary administration.
• You can place the company into liquidation and wind the company up.

A number of these options can still hold considerable risk for the director in question and may still see them being personally liable for the outstanding tax. It is extremely important that if you receive a DPN you act quickly and get professional advice. Given the 21 day notice period from the date the DPN is mailed (not received) it is imperative that you act as quickly as possible.

JLA Insolvency and Advisory is an insolvency and corporate advisory practice based in Margaret Street in Sydney. If you call our professional insolvency team we will be happy to offer you obligation free advice in terms of what your options are and what your next steps should be. If you do then decide to head down the voluntary administration or liquidation route and would like us to assist we can provide practical tailor made solutions to suit your situation.

Call our helpline now on 02 9231 0505 to find out more.

Looking for more advice?