DIRECTOR PENALTY NOTICE

Are you concerned about your personal liability for your company’s tax debts?

Have you recently received a Director Penalty Notice from the Australian Taxation Office?

If you answered ‘Yes’ to either of the above, it is critical that you act immediately

TYPES OF PENALTY NOTICES

There are two types of Director Penalty Notices:

  • The first is a traditional Director Penalty Notice. This type of notice gives a director of a company 21 days to act and undertake certain actions which — if fulfilled — will allow the director to avoid personal liability for the penalty. A director penalty is remitted if, before receiving a director penalty notice, or within 21 days of receiving a director penalty notice, any of the following things happen:
    • the company complies with its obligation;
    • a voluntary administrator is appointed to the company; or
    • a liquidator is appointed to the company.
  • The second is a Lockdown Penalty Notice. If any BAS or SGC statement is not lodged and paid within 3 months of its due date, the director penalty is not remitted as a result of placing the company into voluntary administration or liquidation.The director will remain personally liable for any outstanding debt arising from the relevant BAS or SGC statements unless the company pays the amount outstanding.

READ OUR BLOG POST ON THE ATO’S HUNT DOWN
ON BUSINESSES WITH OUTSTANDING TAX DEBTS HERE

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ACL Quick Tip!

The new Director Penalty Notice laws, which were passed
in June 2012, put directors at greater risk of personal
liability for company debts. At ACL, we recommend that
if your company is not able to pay  its BAS and employee superannuation entitlements as these amounts fall due, it is imperative that you still lodge your BAS and SGC statements by their due date.

But don’t just take our word for it…

Hear from our satisfied past customers: