Director’s Penalty Notice

Director’s Penalty Notice

Are you ready to liquidate a business?

To talk to the Company Liquidation Sydney team about Director’s Penalty Notices you can call us today on 1300 60 70 60.

The Australian Taxation Office (ATO) has the power to collect outstanding deducted taxes by making directors liable for a ‘penalty’ of the same amount as the unpaid tax. These provisions create a liability to the ATO in the name of the director.

Each director of a company becomes individually and separately liable for the full amount of the penalty. If a Director receives a Director Penalty Notice, it requires the Director to take one of four specific actions within 21 days of issue, or the Director will be personally liable for the debt:

  • Pay the debtin full
  • Enter into an instalment arrangement to repay the debt
  • Appoint a Voluntary Administrator, or
  • Appoint a Liquidator

There are severe penalties for breaching the laws surrounding liquidation, call us today and we can help you to take the right steps to ensure that you will be able to comply with the relevant laws.