Thinking of releasing equity in your home or investment property?
In recent months, we’ve seen the ATO ramp up its efforts to chase outstanding tax debts, with a significant increase in the issuance of Director Penalty Notices (DPNs), particularly to companies with larger debts ($75K and above).
A Director Penalty Notice (DPNs) is an ATO notice that makes company directors personally responsible for unpaid taxes like PAYG, super, or GST if their company doesn’t pay.
The recent surge includes DPNs related to tax debts that accumulated over time, particularly from the COVID-19 lockdown periods when enforcement was reduced.
If your business has overdue tax debts, it is crucial to have a clear plan to manage the debt by paying it or entering into a payment plan.
Directors who fail to act quickly can expect the following in addition to DPNs:
- Wind-up actions: The ATO has been actively pursuing the winding up of companies with unmanageable tax debts.
- Garnishee notices: These letters can be sent to your bank and customers, requiring them to pay the ATO directly instead of your business.
- Credit reporting: The ATO may also report your company's debt to credit reporting bureaus, impacting your ability to access future financing.
Don’t let tax debts spiral out of control. Now is the time to engage with the ATO or reach out to your accountant to assist you with managing and reducing your ATO liabilities.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
Get Cashed Up
