Appoint a Liquidator
Can’t pay your tax debt? Received a DPN?
You must act now to avoid personal liability!
For companies with lodgments up to date
If you have been served a Director Penalty Notice and are unable within 21 days of the date on the notice to either pay the debt in full, enter into a repayment arrangement or appoint a Voluntary Administrator, you must appoint a Liquidator.
Learn more about the processes and benefits involved in Liquidation.
To avoid personal liability, a Liquidator must be appointed within the 21-day period allowed by the
Director Penalty Notice. Merely meeting with a Liquidator or advising the ATO of an intention to make an appointment is not enough to avoid liability.
The appointment of a Liquidator can occur almost immediately and The Insolvency Experts are able to organise one within 24 hours, if required.
Where lodgments have not been kept up to date and are more than 3 months overdue
If a company has not lodged all its tax returns within 3 months of the due date – the directors will be automatically personally liable for a penalty equal to the unpaid PAYG and super debt of the company.
The penalty is able to be waived or avoided if a director places a company into Liquidation– but only if that is done before the ATO issues a Director Penalty Notice.
If the ATO does issue a Director Penalty Notice, a director will not be able to avoid personal liability for the unpaid PAYG or superannuation tax debt where lodgments are more than 3 months past due regardless of whether the company is then placed into liquidation.
This means you will lose personal assets to pay a company tax debt.
And just because there are outstanding lodgments, don’t think the ATO cannot act.
The ATO can, in the absence of lodged returns, issue an estimate of the outstanding tax debt and then issue a DPN on the basis of that estimate.
Accordingly, if you have outstanding returns more than 3 months past the due, and believe you your business is viable, bring all lodgments up to date (although this does not relieve a director of personal liability for director penalties) and then place the company into Voluntary Administration if appropriate.
Alternatively, if your business is not viable and you cannot bring lodgments up to date, you must consider liquidating the company before the ATO issues a Director Penalty Notice.
If you have a tax debt, and believe the ATO may be about to issue a DPN, call The Insolvency Experts immediately and without delay on 1300 767 525.
YOU MUST ALWAYS LODGE ALL RETURNS WITHIN 3 MONTHS OF THE DUE DATE OR YOU WILL NOT ESCAPE PERSONAL LIABILITY FOR COMPANY TAX DEBTS WHERE A DIRECTOR PENALTY NOTICE HAS BEEN ISSUED!