ATO Director Penalty Notice – Unpaid company taxes
Directors – don’t get caught being liable to pay your company’s unpaid taxes because you will be personally liable for a Director Penalty Notice (DPN). This is because directors are personally liable for their company’s unpaid tax for PAYG, SG and GST.
Most people who operate a company believe they are personally protected – that their company’s debts remain with the company and that they are not liable for these debts. However, the DPN legislation in Australia makes directors personally liable for certain company tax debts.
Until recently, directors were only personally liable for Pay-As-You-Go (PAYG) withholding and superannuation guarantee (SG). However recent legislation has introduced goods and services tax (GST) as being subject to the DPN regime.
If your company has not paid these tax liabilities when they become due, you become personally liable to pay these taxes. This could personally bankrupt you.
The best way to overcome this is to ensure that your company pays its SG, PAYG and BAS as they become due and payable.
If your company is having difficulties paying its taxes, we can assist in arranging a payment plan or suggest ways of dealing with the unpaid taxes.
Contact us now.