Welcome to PPB - Recovery, Forensics, Advisory

Accountant Connect - ATO

Accountant connect –
ATO Director Penalty Notice

What is it?

  • A notice to a Director under s222AOE of the Income Tax Assessment Act
  • Sent to the Director’s (personal) address as recorded by ASIC
  • Deemed to be served, regardless of the currency of ASIC’s records
  • Non-compliance with the notice will render directors personally liable
  • Issued for unpaid PAYG, withholding taxes and estimates of unpaid taxes
  • To avoid the director being rendered personally liable, within 14 days:
    • 1. the company’s liability must be discharged or;
    • 2. an instalment agreement with the ATO must be in force or;
    • 3. the company must be in Voluntary Administration; or
    • 4. the company must be being wound up, ie. in liquidation

The relevance to you and your client

For your client

  • Directors are made personally liable for specific unpaid company ATO debts
  • Requires urgent attention – within 14 days
  • Often an indicator of company insolvency
  • Directors can be made bankrupt if appropriate action is not taken
  • Directors are personally liable for any breach of an instalment agreement (note s222AQA of the ITAA and s588FGA of the Corporations Act)

For you as an accountant

  • Your client is likely to seek your advice and urgent attention
  • The opportunity is provided to resolve an immediate problem for your client and obtain further insight into its financial position
  • You and your staff need to act promptly in a stressful and uncertain situation to obtain relevant information and provide solutions
  • You are at risk of claim against you if you don’t advise your clients of the personal liability exposure associated with instalment agreements and any non-compliance

Why work with PPB?

  • Our wide experience and ready access to the ATO Insolvency Division
  • We can provide initial consultations without obligation or charge and informal or formal solutions to assist you and your client
  • PPB has the knowledge, experience and expertise to give you support and provide unique, ethical solutions
  • PPB is one of Australia’s leading independent Strategic and Advisory practices with a national team of 28 partners and over 200 staff providing unique and innovative solutions in our specialised services areas: