Director Penalty Notices

As a company director, you are under an obligation to ensure the company can meet its financial obligations. For some years now, the ATO has had the power to make directors personally liable for key tax obligations by issuing Director Penalty Notices.

If a director fails to meet a PAYG withholding, GST or SGC liability in full by the due date, they can become personally liable for director penalties equal to the amount owed. Before the ATO can recover penalties from you personally, they must first issue a DPN stating the unpaid amounts and remission options available.  Failing to comply will lead to further recovery activity which may include issuing garnishee notices, offsetting personal tax credits or initiating legal proceedings. The options available to a director when they receive a DPN depends on the type of DPN.

Lockdown DPN and Non-Lockdown DPN