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.