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There are different types of Director Penalty Notices
Receiving any form of letter or documentation from the ATO can be frightening, especially when you’re unaware of your options and obligations. It is important to seek professional advice from registered professionals. Our team at Australian Debt Solvers have in-house experts to guide you through your next steps after receiving a director penalty notice (DPN).
Together, we will talk you through what your DPN means and what your best approach is moving forward.
21-day DPN
A 21-day DPN outlines specific actions you need to take within 21 days of receiving the DPN. If no action is taken, Directors will be personally liable for the tax debt of the business.
Lockdown DPN
A Lockdown DPN refers to when a Director is currently personally liable for the tax debt of the business. We can help decipher your DPN and what it means.
21 Day and Lockdown DPN
This occurs when you get both in one letter.
We’ll work with you on solutions for your situation
Our focus is on helping businesses and people in financial distress.
We provide sound, expert advice to all our clients to alleviate your stress.
Our team at Australian Debt Solvers take a personal tailored approach to each situation.
We:
- Listen to your situation with empathy, before we provide any expert advice
- Will meet you face to face, anywhere in Australia to talk through your options
- Can offer expertise regardless of what you need, whether Company Liquidation
Administration and Restructure, and/or additional funding for the business, we can help you - Have a team of specialists are ready to assist you 24/are a national firm,
with local teams.
Your Solutions
Our team will discuss and analyse your situation to create a tailored solution that works for you. There are a number of options available to reduce the impact of a DPN and avoid personal liability. There is also the flip side, which is when you do not act and ultimately become personally liable for the company’s tax debt.
Deed of Company Arrangement (DOCA)
We can set up the legal binding agreement between the company and its creditors to minimise the impact of insolvency.
Liquidation Services
Our team of liquidators registered by ASIC know that sometimes it’s better to liquidate the company and move forward in other avenues.
Restructure & Turnaround
Modifying the financial and operational aspects of the business for better efficiency that results in a reduction of unsecured debt.
Voluntary Administration
Together we will aim to get your business back on track by providing you the breathing space through voluntary administration.
What does it mean to be personally liable for tax debt?
When a company has text debt it is debt due by the company. However, if the debt is referring to staff PAYG deductions or superannuation, the ATO can make the funds the director’s personal debt. This is what the ATO makes a director liable by sending a Notice (DPN) via mail.
Learn MoreWhy trust us?
As indicated by our name, at Australian Debt Solvers we are all about finding solutions for our clients. Experience, expertise and personalised service are core values of our business and have allowed us to help people facing financial difficulties
We want the best outcome for you. Together, we will discuss your financial position and assess your options. Guiding you through an appropriate path tailored to you and your business.
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Director Penalty Notice FAQs
Some of the most commonly asked questions when it comes to Director Penalty Notices
If you have received a Director Penalty Notice, there are a number of options available to you. Given you have reported your debt, your options can include:
Liquidation
If you no longer want to trade and wish to close the business, entering liquidation is your best solution. Liquidation is when you wind up the company’s affairs, during this process you will be appointed a liquidator to liquidate the company’s assets and repay the company’s debts.
Small Business Restructure
If you want to continue to trading, a small business restructure is a simplified debt restructuring process. There is an eligibility criteria for those who wish to enter a small business restructure to recover the company’s debts, our team will assess if you are eligible for a simplified debt restructure.
Voluntary Administration
Entering into voluntary administration provides you the breathing space to reduce your debt, restructure and plan to grow the business.
Our qualified team can assist with each option and guide you through the process by alleviating your financial stress. Get in contact with Australian Debt Solvers today for your free consultation, together we will evaluate the best solution for your situation.
You have 21 days to take an action after receiving a director penalty warning letter from the ATO. We can quickly and efficiently appoint a liquidator to the company to ensure you are not issued a Director Penalty Notice.
As a director it is your duty to meet your tax and debt obligations, failure to do so may result you in becoming personally liable. This relates to the following unpaid amounts of; Pay As You Go (PAYG), Superannuation Guarantee Charge (SGC) and Goods and Services Tax (GST).
To avoid becoming personally liable for the company’s tax obligations, it is best to contact Australian Debt Solvers as soon as you receive a Director Penalty Notice to alleviate liability.