If a company fails to comply with their obligations under the PAYG withholding system or the SGC provisions, company directors can be held personally liable for the amount the company should have paid.
The Australian Taxation Office can force directors of a company that is unwilling or unable to meet these obligations, to personally pay those debts by issuance of a director penalty notice (DPT), for an amount equal to these amounts.
The first type of DPNs are issued to company directors that have lodged its business activity statements, instalment activity statements and/or superannuation guarantee statements within three months of the due date for lodgement, but the PAYG withholding and/or SGC debts remain unpaid.
Various solutions are possible.
The second type of DPNs are issued to company directors where a company has failed to lodge its business activity statements, instalment activity statements and/or superannuation guarantee statements within three months of their due lodgement date.
The only solution is paying the debt in full.
Source: AcctWeb
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