Changes to Director Penalty Notice (DPN) regime

Payment arrangements no longer part of the plan and appointment of a Small Business Restructuring Practitioner (SBRP) included. 

Director Penalty Notices

The ATO suspended most overdue tax collection during the COVID-19 pandemic however, it has recently recommenced collection activity. This includes the issuing of DPNs.

Under the DPN regime directors become personally liable for a penalty equal to the value of certain company tax obligations, including superannuation, PAYG withholding and GST, if they are not paid when due. Prior to commencing proceedings to collect these amounts, from a director, the ATO must first issue the director with a DPN.

The options available to a director when they receive a DPN depends on the type of DPN. The two types of DPNs Lockdown and Non-Lockdown DPNs are covered in our earlier article: https://briferrier.com.au/news/director-penalty-notices