Are you a company director who has recently received a Director Penalty Notice? Are you afraid of being held personally liable for your company’s debts? Then you need to learn more about the Director Penalty Notice and how it may affect you personally.
What is a Director Penalty Notice?
A Director Penalty Notice (DPN) is issued by the Australian Taxation Office (ATO). The ATO has the power to hold directors personally liable for any outstanding tax payments under certain circumstances.
What happens if you have received a Notice?
If you have received a notice, you must act immediately. You have 21days to act and put into affect one of the following four alternatives:
One. Pay the full debt.
Two. Enter into a formal repayment plan with ATO. If you chose this option, and the company later breaches the repayment plan, you will become personally liable for the full debt.
If the company director fails to implement one of these options within the 21 day period, then the director will become personally liable for the amount stipulated in the Notice.
In order to know which course of action is most suitable for your company, you need to consult with an insolvency specialist. At CRS Insolvency Services, our consultants are all highly trained in corporate insolvency assignments. We will provide professional advice to help you make the best decision for your company while avoiding personal liabilities. Contact CRS Insolvency Services on 1800 210 073 for 24/7 free expert advice now.