Director Penalty Notices

If a director receives a Director Penalty Notice from the Deputy Commissioner of Taxation the
director may become, or has already become, personally liable for company tax debts.

There are two types of Director Penalty Notices, these are summarised below:

1. The first relates to unpaid GST or PAYG withholding or Superannuation Guarantee Charge liabilities of the company. A director has 21 days from the date of the Notice to appoint a voluntary administrator or a restructuring practitioner or a liquidator to the company in order to avoid personal liability in the event the company is unable to pay the debt within that time period.
2. The second relates to unreported GST or PAYG withholding liabilities or Superannuation Guarantee Charge that has remained unreported for three months from the due date. In such circumstances directors automatically become personally liable to pay a penalty equal to the amounts unreported unless the company’s liability has been discharged within 21 days from the date of the Notice.

The team at A2Z Insolvency Solutions would welcome the opportunity of being able to provide you
or your clients with specific advice in relation to Director Penalty Notices.

All pre-appointment advice including initial phone discussions and meetings are confidential and
free of charge.