What to do when you receive a Director Penalty Notice

Have you received a Director Penalty Notice (DPN)? If you have, don’t panic, but you also need to understand that it’s a serious matter. It’s important to understand your options and take action to mitigate the potential consequences. 

Once a DPN is issued, you’ll have a certain amount of time to respond before you take on personal liability. In this blog article, we’ll take a deeper look at DPNs, what it is, why they are issued and of course, most importantly – how you can resolve it. 

What is a Director Penalty Notice (DPN) and why did you get one?

To put it into simple terms, a DPN is a legal notice issued by the Australian Taxation Office (ATO) that can hold company directors personally liable for their company’s unpaid taxes. 

If your company hasn’t met its tax obligations, with GST, PAYG withholding or Superannuation Guarantee Charge (SGC), a DPN will be issued to the director to pay the outstanding debt. A DPN can result in potential legal action and asset seizure. 

What to do when you get a Director Penalty Notice (DPN)?

It can be pretty confronting to receive a DPN from the ATO. But, there’s no need to stress out – it’s not the end of the line for your business. With the right approach, you can take control, reduce your debt and get back on track. 

At Fix My Credit, we’ve helped countless business owners like you navigate ATO debt and come out the other side stronger. In fact, in many cases, our clients achieve up to an 80% reduction in their ATO debt. 

Ignoring a DPN is the worst thing you can do. The ATO sets strict deadlines, and once they pass, your options become a lot more limited. So, let’s focus on what you can do.

Understand your options

If you’ve received a DPN, there are a few options you can take. 

• Pay the debt: If you can afford to, you can pay the debt off. 
• Restructure your business: This can help reduce your debt and protect your assets.
• Seek expert help: This is where Fix My Credit comes in. We can handle the heavy lifting, from negotiating with the ATO to creating a plan tailored to your situation.

Book a free consultation

Before you do anything else, we recommend talking with Fix My Credit. We offer a free consultation where we can help you understand the specifics of your Director Penalty Notice and chat about the steps you can take. 

How Fix My Credit can help

Debt reduction: At Fix My Credit, we have helped business owners achieve substantial debt reductions – up to 80% in most cases. By analysing your financials, we can negotiate with the ATO on your behalf to minimise your debt. 

Protect your assets: As a company director, the last thing you want is for your personal or business assets to be at risk. With the right restructuring, we can help shield what matters most to you. 

Avoid insolvency: Our priority is to avoid insolvency and get ahead of the problem before it escalates. By taking action now, you can avoid insolvency or legal action. 

Tailored solutions: We understand that every business is different and faces unique financial challenges. With our help, you can create a plan that works for your personal situation. 

Flexible finance options: When money is tight, we offer finance solutions and flexible payment plans to help you manage your ATO debt without it affecting your day-to-day operations. 

Business restructure

In some situations, the best way forward is a fresh start. By restructuring your business you can protect your future while working on past challenges. It’s not about giving up – but looking at things from a different angle. 

Why choose Fix My Credit?

If you have been issued a Director Penalty Notice (DPN), Fix My Credit has the experience to help. We’ve guided countless small business owners through DPNs and other financial challenges, helping them come out the other side with less debt and more confidence.

When you work with us, you’re not just hiring a team – you’re gaining a partner dedicated to helping your business succeed.

Let’s get started!

When it comes to a Director Penalty Notice, the worst thing you can do is nothing. We encourage you to take control of your ATO debt today and start building a brighter future for your business. Book your free consultation with Fix My Credit now, and let’s create a plan to get your business back on track.