Director Penalty Notices
The past few years have been tough on a lot of businesses and unfortunately the pressure of the market has meant that some businesses have accumulated significant tax debts.
The ATO is currently issuing 30-40 Director Penalty Notices per day to recover some of these outstanding funds. This is on top of the awareness letters they have been sending to businesses with tax liabilities over $100,000.
What is a DPN?
A Director Penalty Notice (DPN) is a demand that makes the director of a business personally liable for outstanding tax amounts. The ATO has the power to execute measures to recover tax debts ranging from garnishee notices to wind-up orders.
What should I do if I receive a DPN?
The first thing you should do is review the ATO claim with your tax agent and the ATO. Once the claim is verified your tax agent can work with both parties to establish a suitable payment plan. If an agreement cannot be reached and you need to pay the debt in full you can discuss your financing options with our finance brokers.
If you would like to discuss your personal situation please call our Sydney Markets office on 02 9742 3553.