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Parliament has passed legislation to include GST in the Director Penalty Notice

(DPN) Regime, and it comes into effect 1 April 2020.

What is a Director Penalty Notice ( DPN) ?

This is a letter from the Australian Tax Office sent to a company director making them up until now, personally liable for two types of tax debts of the company:

  • PAYG
  • Superannuation

Now the ATO have added GST to this list.  In most cases this is by far the largest component of the total debt, so the ATO are really tightening the screws.

There are two kinds of DPN’s depending on how late the statutory returns were originally lodged with the ATO.

Generally you must do one of 3 things before 21 days from the date of the notice:

  • Pay the debt
  • Enter into personal insolvency
  • Enter into an arrangement with the ATO to pay the debt

To receive a DPN is an extremely difficult and stressful situation to deal with, but it indicates that all was not well with your cash flow.

If you receive one of these notices, you should contact us immediately, but even better, if you feel that you do not have control over your cash flow at any time, give us a call for a chat to see how we can assist you and improve your situation.

Do not leave it so late that you receive a DPN.

Final Tip: Make sure you have complete control over your cash flow by implementing a cash flow system into your business. Do not leave it to chance. We can help you with this so send us an email questions@accoladeaccounting.com.au