What Is DPN

What is a DPN

A Director Penalty Notice (DPN) is a notice issued from the Australian Tax Office (ATO) to the director potentially making them personally liable for the company’s tax debt.

The DPN is issued when the company has not paid and/or reported their tax obligations or has significant debt.

The penalty generally equals the tax due plus an interest component.

This is in relation to Pay As You Go, Superannuation Guarantee Charge and Goods and Services Tax.

There Are Three Types Of DPN’s Which Can Be Issued.

Essentially there are three types of DPN’s. It can be very confusing as to the type and meaning of the DPN you received. Sufficient to say, all DPN’s can make you personally liable for the company tax debt. That is why it is imperative to deal with the notice within the 21 days.

What Do I Do Now?

We know everyone’s situation is different and that’s why we have such a tailored approach for each of our clients. The best thing you can do is act promptly, call us today and get the expert advice you need as soon as possible.

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Consultation

Book a discovery call with one of our friendly experts to take a deep dive into your finances and investigate your concerns.

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Strategy Session

After assessing your situation, our team report back with the best option for your business recovery.

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Execution

This is where we fix your problems and get you the best outcome for you and your company.

FAQs

From those who have been in similar situations

Where is the DPN sent?
The DPN is usually sent to the director/s’ home address as registered at ASIC, however sometimes it may be sent to your accountant if they are nominated as the registered office.
Should my accountant handle my DPN?
More than likely your accountant is not a specialist in debt mitigation, restructuring or insolvency. However we actively encourage working together with your accountant to deliver the best possible outcome.
How much time do I have to resolve my DPN?
Directors have a maximum of 21 days to resolve their Directors Penalty Notice. Acting quickly often enables more options resulting in better outcomes.
Are Directors personally liable for the DPN?
Directors both jointly and severally can be held liable for payment of the DPN if it has not been resolved in time. Acting quickly is a must when dealing with a DPN.
What possible actions are available to resolve your ATO debt (DPN)?

These options generally apply when a DPN is issued and is before the specified date requirement.

  • Pay debt in full
  • Arrange a payment plan
  • Negotiate with the ATO a reduced and serviceable payment
  • Enter the company into Administration
  • Place the company into Liquidation.
  • Apply for special circumstance provisions e.g. a director being medically unfit
If Administration or Liquidation is the best option why use us?
We know and use the most respected and ethical Administrators and Liquidators in the industry. Believe us there are many whose mission is simply to make as much money from Administration or Liquidation as possible with no regard for the directors.

We before an Administrator or Liquidator is appointed actively seek to protect the directors personal assets, including the family home and mitigate debts.

Importantly, you should be aware that once an Administrator or Liquidator is appointed then they have a legal obligation to not protect any assets held by the director. In other words their responsibilities lie solely with creditors of which they are one. They are not there to represent the interests of director/s in fact quite the opposite.

If I Liquidate can I protect my personal assets?
That is what we do after an immediate review of your personal assets and liabilities.
Will the ATO report the issuance of a DPN to credit reporting agencies?
Yes they have the right to do so if the DPN has not been resolved.

This can have serious implications including supplier relationships and your ability to borrow for up to at least 5 years.

Contact Us

We know time is of the essence in these situations.
Our friendly team of experts are here to help.

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