Changes to the DPN process came into effect on 30 June 2012 to reduce the scope for fraudulent phoenix transactions and or evade employee entitlements.
The key changes are:
- Directors’ penalties now include unpaid superannuation guarantee as well as unpaid PAYG;
- Directors can no longer discharge or extinguish a director penalty by placing a company into administration or liquidation when PAYG or superannuation guarantee remains unpaid and unreported 3 months after the due date;
- In certain cases, directors cannot access PAYG credits in their own tax returns where a company has not paid the ATO; and
- The Commissioner can estimate unpaid PAYG withholding and unpaid superannuation guarantee charge.
These changes are retrospective. They place further importance on making and paying lodgements on time.
Non-payment of statutory obligations is a key indicator of insolvency.
If you believe your company may be insolvent or on the verge thereof, we invite you to contact our team for a confidential discussion and analysis of your options and your directors personal liability. Please call us on 8410 9294 or send an email via this form.