Latest News

Hot Issues
spacer
ATO hit list 2025 – Key Areas Under Review
spacer
Why Succession Planning Matters for Privately Owned and Wealth Groups in Australia
spacer
Benefits of a business plan
spacer
Roles and Responsibilities in a Business Partnership
spacer
Mixing business and pleasure? Be vigilant this tax season
spacer
30 June 2025 - Tax Checklist - Small (and Micro) Business
spacer
3 more GST fraudsters sentenced under ATO’s Operation Protego
spacer
Evolution of Boeing - 1916 - 2025
spacer
ATO - Targeted Areas of Focus 2024-25
spacer
6 ways to improve your business plan
spacer
Benchmarks for small business
spacer
Beware the early lodgment tax trap, CPA Australia warns
spacer
Tax lawyer flags compliance traps with family trusts
spacer
Superannuation on paid parental leave from 1 July 2025
spacer
Tax Time Checklists Individuals; Company; Trust; Partnership; and Super Funds
spacer
Comparison of various Animal Weights
spacer
2025 Tax Planning Guide Part 2
spacer
From 1 July 2025 ATO Interest is no longer tax deductible
spacer
SME confidence and conditions see uptick over Q1 2025, survey reveals
spacer
Depreciation expert urges property investors to leverage tax depreciation
spacer
Buy a business
spacer
Upskilling and self-education costs
spacer
How secure is your super account?
spacer
Freshwater Resources by Country 2025
spacer
Why Might a Lease Dispute Occur?
spacer
2025 Tax Planning Guide Part 1
spacer
$20,000 instant asset write-off
spacer
New Bunnings scam warning
spacer
The Largest Empires in the World's History
Article archive
spacer
Quarter 1 January - March 2025
spacer
Quarter 4 October - December 2024
spacer
Quarter 3 July - September 2024
spacer
Quarter 2 April - June 2024
spacer
Quarter 1 January - March 2024
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
Director Penalty Notices (DPN)

Directors need to be more aware of the increased ATO scrutiny of company reporting and payment obligations.

       

 

The ATO has been quickly increasing its focus on business audits, its 'dob-in’ a business scheme, collecting outstanding tax liabilities, and its visits to regional business sites.  This is a lot already but it's not all, the ATO is also increasing the amount of Director Penalty Notices (DPN).

What is a DPN?

A Director Penalty Notice (DPN) means the directors of a company can be pursued directly for outstanding Superannuation Guarantee Charges (SGC) and Pay as You Go (PAYG) liabilities.  Directors are no longer protected by a company’s corporate structure.

Under what circumstances would a DPN be issued?

  • Historical non-reporting;
     
  • Significant ATO debt which remains unpaid;
     
  • Suspicion of phoenix activity.  Phoenix activity is defined by the ATO here.

Obviously the main ATO trigger points for issuing a DPN relate primarily to obligations that have been outstanding for some time, though the current length of an outstanding obligation will most likely be shortened in the future.  Equally obvious is that phoenix activities are illegal. 

Directors need to pay very close attention to their company’s reporting and payment obligations and your accountant is well placed to help.  If you have any concerns, then don't hesitate to ask. 

Being more focused on these issues may sound relatively simple but in larger companies the directors may not have direct oversight regarding the company’s tax compliance obligations. In such cases all key personnel must also be very aware of the greater ATO scrutiny, and act accordingly. 

Nor are new directors exempt.  If there is an SGC, PAYG and GST liability that remains unpaid and unreported within 3 months from the date of a new director’s appointment then they too become liable.

Directors only have 21 days from the date a Director Penalty Notice is issued to act and avoid personal liability.

 

AcctWeb

 

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2024 - All Rights Reserved | 333 Canterbury Road, Canterbury VIC 3126 | Tel: 03 9509 3911 Site by Acctweb