Jones Partner

Director Penalty Notices

10/04/2013 by Bruce Gleeson

In June 2012 there were changes to the Director Penalty Notice (DPN) regime. Most importantly such changes now expose directors to automatic personal liability where either PAYG or SGC obligations remain unpaid and unreported for more than 3 months after the due date. Whilst the ATO will still have to send a DPN to recover on the debt – the director can no longer avoid personal liability in such circumstance by voluntary administration or voluntary liquidation. The important message is that at an absolute minimum directors should ensure that they comply with reporting obligations on-time.

Unfortunately there is still a status quo position being adopted by some directors and advisors. If you do receive a DPN, it is critical to seek professional advice urgently so that it can be determined what type of DPN you have received.