Also called: DPN
Director penalty notice
A director penalty notice is a notice issued by the ATO that can make a company director personally liable for certain unpaid company obligations, including PAYG withholding, GST and superannuation guarantee charge. Strict time limits apply to the options available.
What is a director penalty notice?
A director penalty notice is a notice issued by the ATO that can make a company director personally liable for certain unpaid company obligations, including PAYG withholding, GST and superannuation guarantee charge. Strict time limits apply to the options available.
Example
A director receiving a notice for unreported PAYG withholding may find the liability cannot be avoided by placing the company into administration.
Why it matters
It is a legal matter with tight deadlines — get advice from your accountant or a registered adviser immediately, not later.