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.
HAVE YOU RECEIVED A DIRECTOR’S PENALTY NOTICE? READ ABOUT YOUR OPTIONS 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.