If you have received a Departure Prohibition Orders (DPO) from the ATO you are not alone because the ATO is issuing DPOs to recover tax debts as quickly as they can be printed.  The good news is that  you can have the DPO removed by paying all of your tax debts or entering into a payment plan.  We can help you with this.

Notification and Enforcement:

Once a DPO is issued, the individual is typically notified through:

Personal Service: Delivering a copy of the order directly to the individual.

Mail: Sending the order to the individual’s last known place of residence or business.

The Australian Federal Police and the Australian Border Force are informed to enforce the order, preventing the individual from departing Australia.

Revocation of a DPO:

A DPO remains in effect until it is revoked by the Commissioner or set aside by a court.

The Commissioner may revoke the order if:

–              The tax liabilities have been fully discharged.

–              Satisfactory arrangements for payment have been made.

–              The Commissioner considers the tax liabilities to be completely irrecoverable.

Individuals may also apply for a Departure Authorisation Certificate (DAC) to permit temporary departure from Australia under specific conditions.

Criteria for Issuing a DPO:

The ATO may issue a DPO under the following conditions:

1. Existence of a Tax Liability: You have an outstanding outstanding tax debt.
2. Commissioner’s Belief: The ATO believes that issuing a DPO is necessary to ensure the you do not depart Australia without fully paying the tax debt, or Making satisfactory arrangements for its payment.

These provisions are outlined in Part IVA of the Taxation Administration Act 1953.

Factors Considered Before Issuing a DPO:

Before issuing a DPO, the ATO evaluates various factors, including:

– Recoverability of the Debt: Assessing whether the tax liability can be recovered.

– Asset Evaluation: Determining if the individual’s known assets are sufficient and readily realisable to cover existing and future tax debts.

– Disposal of Assets: Investigating any recent disposal of assets to associated persons or entities, which might be overturned in bankruptcy.

– Concealment of Assets: Looking for indications of asset concealment, such as bank accounts in false names or use of aliases.

– Overseas Transfers: Monitoring funds transferred overseas and the purposes of such transfers.

– Business Interests: Considering the individual’s significant business interests within Australia.

– Legal Investigations: Noting if the individual is under investigation for criminal activities and whether any charges have been laid.

– Travel Indications: Reviewing any indications of likely overseas travel without apparent necessity.

These considerations help the ATO determine the necessity of a DPO to secure tax debt recovery.

In summary, the ATO issues a Departure Prohibition Order to ensure that individuals with outstanding tax debts do not leave Australia without addressing their financial obligations. The decision to issue such an order is based on a comprehensive assessment of various factors related to the individual’s financial situation and behaviour.

Action:

Act now.  Contact us and we can assist you to have the DPO removed.