Business Planning Workshop Register now In this action-packed 2…Read More
Register Now Preview modal- Financial markets are moving and…Read More
Urgent message to business owners: ATO unrelenting in tax debt recovery – DPNs on the rise Posted on September 20, 2022
The ATO is on a mission to recover unpaid taxes and directors are being held personally liable. The stakes are high, and business owners MUST seek the help of their accountant to navigate this murky water.
Tens of thousands of warning letters are issued by the ATO each month to directors of companies with outstanding debts on PAYG, the superannuation guarantee charge and GST with 30-40 director penalty notices distributed to company directors every day. Credit agencies are now involved in recovering the debt. In fact, directors can be held personally liable for it.
21-day deadline DPNs push business owners up against a wall to make one of four life-changing choices: pay the debt in full; place the company into liquidation; place the company into voluntary administration; or appoint a small-business restructuring practitioner.
The ATO acknowledges that many small businesses have had a tough run through COVID, but it is time to get organised. The worst thing directors can do is bury their heads in the sand. If tax debt is an immediate or anticipated concern, directors MUST engage their accountants and the ATO to arrange a repayment strategy. The alternative doesn’t bear thinking about.
Contact us if you’re concerned: [email protected]