If you received a director penalty notice from the ATO and are wondering what you should do next, it is best to contact a professional tax agent to guide you through the process and help you prevent from winding up a company. Whether facing financial hardships or feel pressured from secured and unsecured ATO creditors, you can be sure that with the help of a professional financial agent you will resolve all your business concerns.
A director penalty notice can be issued not only to current, but also past directors of companies that failed to pay the taxes. Instead of dealing with this problem on your own, rely on a good financial agent that will help you avoid liquidation and loosing your business and personal assets. Instead of winding up a company in order to pay off creditors, you can rely on the agent to come up with solutions by negotiating a payment arrangements with the ATO and avoid losing your investment. Here are some of the things you need to do if you receive a director penalty notice.
If you receive a director penalty notice, you will have 21 days to come up with a solution that will be acceptable not only for you, but the Australian Taxation Office as well.
If you fail to find a solution within 21 days, you will be personally liable for the company’s tax liability and can be sued personally.
One of the options to respond to the received director penalty notice is to pay off your total debt.
In case you cannot pay off the debt in full, it is important to call your tax agent so he can negotiate with the ATO and work out a payment plan.
If you are not able to pay off the debt even in monthly installments, then you need to appoint a liquidator and go through the winding up a company process in order to pay off the creditors.
If the PAYG withholding and SGC obligations are paid within 3 months of the due date, you have the opportunity to either pay the debt in full or place the company in voluntary administration or liquidation.
The amount of the director penalty notice is the debt of not paid PAYG withholding or SGC liability on time. If you fail to pay, the taxation office can collect the penalty by withholding the tax refund or by some other means.
If you receive a director penalty notice, you must act immediately to ensure you do not lose your personal assets like your house, car, investment properties, etc. if you do not act in time you may face bankruptcy. Call the experts if you failed to pay the debt within 3 months after the due date to contact the ATO and ask for some additional payment solutions that will otherwise not be available to you.
You will not be held liable for a director penalty notice if you began the winding up a company process or have provided a relevant reason such as illness or some other health problem that have prevented you to properly manage your company.