Directors of a company are personally liable for the tax liabilities of a company.  If a company has unpaid tax and/or superannuation liabilities the ATO may issue a director penalty notice (DPN) to the director(s) of the company.

If you are a director and have received a DPN, you are personally liable to pay the unpaid amounts as well as all interest and penalties which have accrued and will accrue until the unpaid amounts are paid in full.

You should act quickly when receiving a DPN as you are only given 21 days from the date set out in the DPN before the Commissioner of Taxation initiates legal proceedings to recover the debt.

Our team has extensive experience in dealing with DPN’s and can provide you with practical advice which incorporates your personal circumstances.

As a matter of priority, you should:

  1. Review the date set out on the DPN, as you must respond to the Commissioner within 21 days from this date;
  2. Consider whether the company has lodged all outstanding tax returns within three (3) months of their due date;
  3. Assess the amount of unpaid tax and superannuation liabilities; and
  4. Contact a member of our taxation department at Antunes Lawyers to discuss the options available to you so that we can resolve this issue.

Our team can assist you by providing you with a strategy and solution which incorporates:

  1. Lodging a defence against the DPN with the ATO;
  2. Negotiating with the ATO as to repayment of the outstanding tax liabilities;
  3. Lodging with the ATO an application to remit any interest and penalties which have and will accrue;
  4. Entering into a payment arrangement with the ATO for repayment of the debt;
  5. Placing the company into voluntary administration or liquidation;
  6. Entering into bankruptcy if you are unable to repay the outstanding tax liability;
  7. Providing advice relating to, and attending to, the re-structuring of your business affairs.

Talk to one of our expert lawyers today.