Director Penalty Notice Brisbane, Do you know the difference?
Each director is separately liable for the full amount of the penalty as these provisions create a liability to the Australian Tax Office.
The Two Types of Director Penalty Notices – 21 Day Director Penalty Notice
This notice requires the director to take action within 21 days of the notice or as a result the director will be personally liable for the debt.
Here are the actions you may take in this instance:
- Ensure the debt is paid in full;
- Installment arrangements are available to pay the debt, it is recommended that if you cannot afford to pay it, you enter into it;
- You may appoint a Liquidator
- You may appoint a Voluntary Administrator
Lock Down Director Penalty Notice
This notice illustrates that if the director that unless debts can be paid by the end of 21 days, they will once again be held personally liable. Furthermore, there are no provisions in escaping this, nor would putting the company in liquidation or administration assist in this matter. Please note that the ATO can enforce lock down, even after entering into liquidation.
Act Quickly you don’t get caught out.
Director Penalty Notice FAQ’s
What is a Director Penalty Notice (DPN), and how can Brisbane Debt Solutions assist in this matter?
A DPN is a notice issued by the Australian Taxation Office (ATO) to directors of companies that have unpaid Pay As You Go (PAYG) withholding or Superannuation Guarantee Charge (SGC) liabilities. Brisbane Debt Solutions can provide expert advice and assistance to directors who receive a DPN and help them manage their obligations to avoid personal liability.
What are the consequences of receiving a Director Penalty Notice in Brisbane?
Directors who receive a DPN may become personally liable for the company’s unpaid PAYG withholding or SGC liabilities if the company fails to pay them within a specified time. Personal liability can include fines, penalties, and potential bankruptcy. Brisbane Debt Solutions can provide advice on managing the consequences of a DPN and developing a plan to address the company’s financial issues.
How can Brisbane Debt Solutions help to prevent a Director Penalty Notice in Brisbane?
Brisbane Debt Solutions can provide advice and assistance to directors to help them understand their obligations and meet their compliance requirements. This can include implementing processes to ensure timely payment of PAYG withholding and SGC liabilities, monitoring cash flow to identify potential issues, and developing strategies to manage the company’s financial affairs. By taking proactive steps, directors can reduce the risk of receiving a DPN and personal liability for the company’s debts.