Director Penalty Notice (DPN)

A director penalty notice is sent to a director by the Australian Tax Office, which makes that director personally liable for two types of tax debts:

1. Pay As You Go (PAYG); and
2. The Superannuation Guarantee Charge (SGC) liabilities.

There are two types of DPNs: the first gives a director 21 days to take action to avoid personal liability and the second can make a director automatically personally liable for PAYG and SGC if company tax returns are not lodged on time. The latter is also referred to as a “lockdown DPN” and it means there’s no opportunity to avoid that liability once the DPN is served.

If you are director of a company that’s in financial stress, contact us to discuss possible options that will help you avoid the consequences of being personally liable.