
What is a Director Penalty Notice?
A Director Penalty Notice (DPN) is a legal document issued by the Australian Tax Office (ATO) to a director of a company. The purpose of the director penalty notice is to inform the director they are now personally liable for the tax debts of the company.
If you’ve received a director penalty notice, together we will get you back on track. Speak to one of our expert insolvency practitioners today.
Types of Director Penalty Notices you may receive
21-Day Director Penalty Notice
A 21-Day Director Penalty Notice requires the director of the company to act within the 21-day period stated in the notice. This Director Penalty Notice is issued when the company’s tax debt has not been paid, but has bee reported to the ATO within a three month period.
If you have received a 21-Day Director Penalty Notice allows you to:
- Repay the tax debt
- Appoint an administrator under the Corporations Acts
- Appoint a restructuring practitioner under the Corporations Act
- Begin to wind up the company’s affairs
If none of the above is actioned, you can become personally liable for the company’s tax debt. Let’s work together to get on the front foot of your business, speak to our experts today.
Types of Director Penalty Notices you may receive
Lockdown Director Penalty Notice
Lockdown Director Penalty Notice is issued by the ATO when the tax debt is not paid and has not been reported within three months of the due date. If you have received a Lockdown Director Penalty Notice, we advise to pay the company debt in full within the period stated on the notice to ensure you can avoid personal liability.
What are your options?
If you have received the Director Penalty Notice, it’s best to repay the debt in full. Our specialists can help you
during this difficult process.

Liquidation
Liquidation can sound scary, but it doesn’t need to. We will guide you through winding up the company’s affairs and alleviating your stress with our registered by ASIC liquidators.

Restructure & turnaround
We can help reduce debt levels, map out changes and grow the business back to being profitable through a restructure and turnaround

Administration
L et’sget your company back on track by entering into administration. This enables your company to move forward back to profitability.

Deed of Company Arrangement (DOCA)
To minimise the impact of insolvency, we can set up a legal binding agreement between the company and its creditors to repay the debt.

“A pleasure to work with, efficient and proactive in their approach to all tasks. Transparent with information and very honest each step of the process, with no surprises at the end. I would highly recommend Mackay Goodwin to friends, family and colleagues.”
FAQs
About your recovery partner

Liquidators registered by ASIC

ARITA Professional members

CA & CPA qualified accountants

40+ staff nationwide

AFR top 100 accounting firm 2017, 2018, 2019, 2020