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.

Speak to our professional team on 1300 788 788 for IMMEDIATE solutions for your business.

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