In April 2013, the Australian Financial Review reported that the Australian Tax Office (ATO) was chasing up debts owed by directors. The ATO has now issued warning letters to directors of companies that have unpaid Pay As You Go (PAYG) withholding amounts and unpaid superannuation contributions.
Why you need to Pay
A director of a company that has a tax debt to the ATO (often in relation to PAYG withholding amounts) may be served with a Director Penalty Notice also known as a “DPN”. The aim of a Director Penalty Notice or DPN is to make directors liable for their company’s unpaid tax debt.
If you are a Director of a company and you have not fully met or complied with your Director obligations to the ATO, then your personal assets may be at risk. During April 2013, the ATO has issued the highest ever amount of DPNs – highlighting that the ATO are serious about collecting tax from businesses not matter what!
Don’t ignore Director Penalty Notices – you can become personally liable! If your business has a tax debt or you have received a Director Penalty Notice it is vital that you seek professional advice quickly!
There can be significant ramifications for not complying with the ATO’s notice, this can include losing personal assets such as cars, property or shares. Here at The Quinn Group our team of Tax Lawyers and Tax Accountants are experienced in dealing with the ATO and tax debt issues. For more information on what the ATO is doing or about tax debt generally, submit an online enquiry. Alternatively, call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to book an appointment today.