penalty red card

Director penalty notices

Directors obligations and personal liabilities for PAYG withholding, SG Charge and GST

In March the ATO will be contacting relevant clients via letter to inform them about their potential personal liability for company tax debts under the Director Penalty Notice (DPN) program.

The letter will be sent to directors of companies if the company has not met their debt obligations in respect of PAYG withholding, Superannuation Guarantee Charge and GST.

Directors will be notified that the ATO is considering issuing them with a DPN, which makes them personally liable for the debts of their business if the company does not actively manage their debt.

The focus is on making directors aware of their obligations and personal liabilities, and the actions to be taken if they don’t engage. The ATO will be providing clear pathways for clients to re-engage, work with them, and avoid escalation.

There is information on the ATO website if you need help with paying and support in difficult times. It is crucial that you engage with the ATO early before any debts become unmanageable.

Generally, while you have a debt, general interest charges continue to apply. Make sure that you bring all your lodgments up to date to avoid further penalties. Please contact the team at Salisbury Accountants on 02 6041 3014 to find out how we can also help you.

More Director reading

Source: ATO