ATO business tax debt? See which options are still open.

A director penalty notice (DPN) is a notice from the ATO that can make a director personally liable for certain unpaid company debts: PAYG withholding, GST and the super guarantee charge. You have 21 days from the date the ATO posted the notice. If the company lodged those amounts on time, the penalty may still be remitted within the 21 days, for example by paying, appointing an administrator or a small business restructuring practitioner, or beginning to wind up the company. If it didn’t lodge on time, paying the liability is usually the only route left. More on director penalty notices.

Yes, in some cases. The main way is through a director penalty notice for PAYG withholding, GST and the super guarantee charge. Company income tax and debts to suppliers aren’t recoverable from directors through a DPN.

The remaining balance generally becomes due again, and interest continues. The ATO may also take further steps such as garnishee notices. A new arrangement can often be negotiated, but it needs to be realistic for the business’s cash flow and lodgements need to be up to date.

A garnishee notice lets the ATO collect money owed directly from a third party that holds or owes money to the business, such as its bank or its customers. It can tighten cash flow quickly, so it’s worth looking at the options as soon as one arrives.

Small business restructuring is for incorporated businesses with total liabilities under $1 million. Employee entitlements must be paid and tax lodgements must be up to date before a plan can be put to creditors, and other criteria apply. We work with a panel of registered small business restructuring practitioners; the practitioner confirms eligibility. More on small business restructuring.

Sometimes. A loan can pay out the ATO, but whether it helps depends on the rate and terms offered compared with the ATO’s interest charges, and lending criteria apply. We can look at options through our lender panel and tell you plainly if an ATO arrangement is the better path. If a loan is arranged, A & M Group may receive a commission from the lender.

We look at where the business stands, explain the options that are still open, and help put the chosen option in place, whether that’s a payment arrangement proposal, refinancing, or working with a registered practitioner. Debt Negotiators is a fee-based service; fees depend on the work involved and are explained before you decide.