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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.

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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.

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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.

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Restructure & turnaround

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

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Administration

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

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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.

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“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

If you have received a Director Penalty Notice Warning Letter issued by the ATO, you have two options. You can either enter into a payment arrangement with the ATO, or appoint an administrator or liquidator. At the end of the day the ATO want to see you taking action to repay the debt.

As a director you are responsible for ensuring the tax obligations are reported and paid on time. If the company fails to report and pay their tax obligations, you as a director can become personally liable for them. In this case, the ATO will issue a Director Penalty Notice outlining the tax types that you may be personally liable for if you do not act within the 21-days outlined in the notice. The tax types can include, Pay As You Go (PAYG), Goods and Services Tax (GST) and Super Guarantee Charge (SGC).

Yes, you will be able to become a director of another company even if the current company is liquidation.

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

Our liquidators

Richard Lawrence

Director & ASIC Registered Liquidator

Melbourne

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Gavin King

Director, ASIC Registered Liquidator & AFSA Registered Bankruptcy Trustee

Sydney

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David Hurst

Director & ASIC registered Liquidator

Sydney

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Edwin Narayan

Director & ASIC registered Liquidator

Sydney

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Domenic Calabretta

Chief Executive Officer & ASIC registered Liquidator

Sydney

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Grahame Ward

Director & ASIC registered Liquidator

Sydney

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Mitch Ball

Chief of Insolvency Operations & ASIC registered Liquidator

Sydney

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Richard Lawrence

Director & ASIC Registered Liquidator

Melbourne

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Orla O’Driscoll-Carmody

Bankruptcy Supervisor

Sydney

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Saurav Malhotra

Director

Sydney

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Get in touch

Speak to one of our experts now for a free consultation.
Enter your details below or call 1300 750 599.