A Director Penalty Notice can allow the ATO to recover specified unpaid company tax and super amounts personally from a director.
We help reconcile the notice, reporting history and potential lock-down status. Legal, restructuring or insolvency advice may also be required.
How we can help
Identify every covered liability
Reconcile the DPN against company accounts and lodgment history.
- PAYG withholding.
- Net GST and related amounts.
- Super guarantee charge.
Work out lock-down status
Reporting history can affect whether specified restructuring or insolvency steps remit the penalty.
- Check notification dates.
- Compare statutory due dates.
- Do not assume administration removes it.
Treat 21 days as urgent
The ATO cannot begin recovery proceedings until 21 days after giving the notice; delay can affect options.
- Record when it was given.
- Reconstruct accounts now.
- Obtain other advice promptly.
Check history and defences
Limited statutory defences and director rules require detailed factual and legal analysis.
- Confirm appointment dates.
- Map liability periods.
- Gather defence evidence.
A clear process from consultation to action
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1
Initial consultation
We discuss the DPN, when it was given, liabilities and reporting history during the urgent paid consultation.
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2
Reconcile company records
If further work is engaged, PAYG, GST and SGC are matched to reporting and payment history.
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3
Determine lock-down status
We identify which penalties may have remission pathways and which may be locked down.
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4
Act on a viable option
The tax response is coordinated with legal, restructuring or insolvency advice where required.
What to have ready
- Every page of the DPN.
- The date it was given.
- Company ATO statements.
- PAYG and GST history.
- SGC statements and payments.
- Director appointment records.
Director Penalties and the 21-Day Rules
ATO enforcement guidance explains director penalties, the notice period and how reporting history affects options.
Read the guideFrequently asked questions
What is a DPN?
It is a formal ATO notice relating to a director penalty for specified unpaid company liabilities.
Which liabilities can it cover?
Specified unpaid company PAYG withholding, net GST and super guarantee charge liabilities can be included.
Why does 21 days matter?
The ATO cannot begin proceedings until 21 days after giving the notice, and some options may depend on action in that period.
What does lock-down mean?
Certain restructuring or insolvency steps no longer remit the penalty because relevant liabilities were reported late.
Does resigning remove it?
Not automatically. Appointment dates, liability periods, reporting history and statutory rules require review.