DPN Disaster: How Director Penalty Notices let the ATO chase directors personally

Director Pays Now! Why DPNs are like a director’s personal guarantee for company tax debts

Director Penalty Notices (DPNs) are one of the ATO’s most aggressive debt collection tools, shifting company tax debt onto directors personally—whether they realise it or not.

With 27,000 companies issued DPNs in FY24 alone, and the ATO pushing hard to recover $35 billion in small business tax debt, this problem isn’t going away.

DPN liability is easy to fall into and nearly impossible to escape. Late BAS or super lodgements can trigger automatic personal liability, and once a DPN expires, it’s almost irreversible. Worse still, they’re just a regular letter sent to a director’s ASIC address, making them easy to miss.

THE RELEVANCE OF THIS TO ACCOUNTANTS:

When things go wrong, accountants are often blamed, so staying ahead of DPN risks is critical.

In this webinar, Jarvis Archer, director at Business Reset, speaks with specialist tax lawyers, Megan Bishop and Christian Febbraro of Piper Alderman Lawyers to explain how to stop a DPN from becoming a financial disaster—including:

• The horror stories of directors who lost everything, and
• The miracle recoveries of those who acted in time.

What You Will Learn:

• How to know when your client may receive a DPN
• How to spot a DPN before it’s too late – Timing is everything
• The two types of DPNs – Small mistakes can change everything
• Avoiding personal liability – The compliance steps every director should take
• Got a DPN? Act fast – The exact steps to stop it from ruining someone’s life
• 4 types of defences to a DPN – When the ATO gets it wrong (and how to challenge it)
• Expired DPNs – What to do when the director’s liable
• Risks for accountants – Avoiding blame if your client doesn’t act

This session is critical for accountants, bookkeepers, business advisors, and company directors who want to protect themselves and their clients from the devastating consequences of Director Penalty Notices.