What is a Directors’ Penalty Notice?
A Directors’ Penalty Notice is issued by the Australian Taxation office and will be issued to the directors’ residential address as it is registered with the Australian Securities and Investments Commissions (ASIC). For that reason it is imperative that directors maintain their current residential address details with ASIC.
The Directors’ Penalty Notice requires a director to take one (1) of the four (4) alternative steps within twenty one (21) days to avoid personal liability;
- Pay the debt in full; or
- Enter and installment arrangement to pay the debt; or
- Place the company into Voluntary Administration; or
- Place the Company into Liquidation.
If the twenty one (21) day period expires and the director hasn’t implemented one (1) of the four (4) options then the director will become personally liable for the amount listed in the notice.
Furthermore, directors need to be aware that if your if your lodgements with the ATO are more than 3 months overdue directors become personally liable for unpaid PAYG and employee super contributions. In other words, even if you take one of 4 steps listed above within twenty one (21) days of receiving the notice you are still personally liable for the debt.
To learn more about the Directors’ Penalty Notice regime call us now on our toll FREE advice line on 1800 210 073.