← BACK TO BLOG
SBR may help if a company director receives a Director Penalty Notice, but it is not a guaranteed solution. While SBR can address the company's underlying tax debt, it does not automatically remove personal liability. Whether it helps depends on the type of DPN, the...
Voluntary administration may help remit liability for certain non-lockdown Director Penalty Notices (DPNs) if action is taken within strict timeframes. However, it does not automatically eliminate personal liability, particularly for lockdown DPNs or...
If you receive a Director Penalty Notice (DPN) first check what type it is. For a non-lockdown DPN, directors may reduce personal liability through payment, administration, or liquidation within strict timeframes. For a lockdown DPN, liability is usually unavoidable...
A Statutory Demand is issued by a creditor to recover unpaid company debts and may lead to liquidation if ignored, while a Director Penalty Notice (DPN) is issued by the ATO for unpaid tax obligations and can make directors personally liable for certain company tax...
A garnishee notice allows the ATO to recover unpaid tax debts directly from business bank accounts or incoming payments, while a Director Penalty Notice (DPN) can make company directors personally liable for certain unpaid tax obligations, including PAYG withholding...
The ATO recovers unpaid tax debts and penalties by escalating enforcement action. This may include reminder notices, statutory demands, garnishee notices, Director Penalty Notices (DPNs), legal proceedings, and liquidation applications. In case of DPNs, directors can...
Yes, a Director Penalty Notice (DPN) can still be issued after liquidation if unpaid PAYG, GST, or superannuation liabilities existed before the company was wound up. Directors may remain personally liable, particularly where lodgements were late, outstanding, or...
Yes, new directors can become personally liable for penalties and unpaid tax debts that existed before their appointment if the company fails to address them within the required timeframe. Liability often depends on the company’s lodgement history, the director’s...
A non-lockdown DPN applies where the company lodged its PAYG, GST or SGC obligations on time but failed to pay. This preserves restructuring or remission options. A lockdown DPN arises where lodgements were late or not made, meaning directors may remain personally...
If the ATO refuses a payment plan, the full tax debt remains immediately payable and recovery action may escalate. This can include garnishee notices, Director Penalty Notices (DPNs), legal proceedings, or credit reporting. Taxpayers may still negotiate revised...
A Director Penalty Notice (DPN) is triggered when a company fails to meet certain ATO tax obligations. Common triggers include unpaid PAYG withholding, unpaid superannuation guarantee charge, failure to lodge BAS or tax reports on time, and persistent unpaid tax...
You can defend a Director Penalty Notice by acting within 21 days, paying the debt, or placing the company into administration (if non-lockdown). Legal defences include illness, taking all reasonable steps, or having no viable options. Strong evidence is essential,...
Once a Director Penalty Notice (DPN) is issued, directors have 21 days from the issue date to respond. Review the debt, confirm whether the notice is lockdown or non-lockdown, assess the company’s lodgement history, and consider options such as payment, restructuring,...
Director penalty remission allows directors to avoid personal liability if specific actions are taken within strict timeframes—usually within 21 days of a non-lockdown DPN. This typically requires appointing an administrator or liquidator. If deadlines are missed or...
Small business restructuring can stop a Director Penalty Notice only in limited cases. If a non-lockdown DPN is issued, appointing a restructuring practitioner within 21 days may remove personal liability. However, this option is unavailable for lockdown DPNs or if...
Deregistering a company does not remove a Director Penalty Notice or the director’s personal liability for unpaid tax debts. Even after deregistration, the ATO can pursue recovery, and the company may be reinstated for enforcement. Directors must address DPN...
A Director Penalty Notice (DPN) cannot be placed on hold or paused once issued. However, the ATO may delay enforcement if directors actively engage, negotiate, or demonstrate intent to resolve the debt. Acting within the 21-day window is critical, as liability becomes...
Director Penalty Notices Former directors can still be liable for penalties if the underlying debt or misconduct occurred during their tenure. Resignation does not remove responsibility for unpaid taxes, insolvent trading, or breaches of duty. Liability depends on...
Director Penalty Notices Company directors can set up a payment plan for a Director Penalty Notice (DPN), but it doesn't remove personal liability—especially for lockdown DPNs. The ATO applies rules, including upfront payments, direct debit, and full financial...
A Director Penalty Notice (DPN) is an enforcement notice issued by the Australian Taxation Office that can make directors personally liable for unpaid company tax debts, including PAYG and superannuation. Directors have 21 calendar days from the notice date to take...