DPN is a notice issued by ATO to a director (or former director), that they may be
personally liable for the company’s outstanding:
1. PayG withholding liability
2. GST liability
3. Superannuation Guarantee Charge liabilitiy
(However, DPN doesn’t cover the liability towards income tax of the company)
DPN is issued mainly if a company failed, neglected, or refused to pay and/or
report tax obligations, significant unpaid debt.
Instances when DPN is issued:
DPNS are issued when a company:
1. is unwilling to work with ATO
2. repeatedly default its obligations
3. don’t pay the above-mentioned liabilities or don’t take steps to resolve the situation
4. is subject to an audit and ATO finds deliberate avoidance of payment obligations
Before issuing with DPNs, ATO first gives a company options (like payment plans) &
even remissions, where available.
- Need Free Consultation?
