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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...