Taxpayers – DPNs are coming faster and more often than ever:
I have seen it with my own eyes.
The pace is nothing like before.
The ATO is issuing Director Penalty Notices (DPNs) after covert audits at a rate I have not seen in years.
Locked and unlocked DPNs are landing in mailboxes with little warning.
This is not just a trend. It is a shift in how tax compliance is enforced.
Directors are now at real risk.
Here is what I have learned from defending DPNs and protecting clients:
1. Early Detection:
↳ Monitor ATO activity and correspondence daily.
↳ Set up alerts for any changes in lodgement or payment status.
↳ The earlier you know, the more options you have.
2. Immediate Action:
↳ Do not wait. Respond to DPNs the day they arrive.
↳ Engage with the ATO and seek advice from a tax lawyer or insolvency expert.
↳ Delay can lock in personal liability.
3. Accurate Records:
↳ Keep all BAS, PAYG, and super records up to date.
↳ Lodgement on time is critical, even if you cannot pay.
↳ Late lodgement can turn an unlocked DPN into a locked one.
4. Director Resignations:
↳ Resigning as a director does not remove liability for past debts.
↳ Only timely lodgement and payment can protect you.
↳ Know the rules before making any move.
5. Payment Arrangements:
↳ Negotiate payment plans with the ATO as soon as trouble starts.
↳ Document every conversation and agreement.
↳ A good payment plan can pause further action.
6. Voluntary Administration:
↳ Sometimes, appointing an administrator is the only way to avoid personal liability.
↳ This must be done within 21 days of receiving a DPN.
↳ Do not leave it to the last minute.
7. Communication:
↳ Keep all directors and key staff informed.
↳ Share updates and risks openly.
↳ Silence leads to mistakes.
8. Professional Support:
↳ Work with accountants, lawyers, and insolvency experts who know DPNs inside out.
↳ Their experience can mean the difference between success and disaster.
9. Learn from Each Case:
↳ Every DPN defence teaches something new.
↳ Review what worked and what failed.
↳ Build better systems for next time.
10. Stay Calm:
↳ Panic leads to poor decisions.
↳ Stay focused, act fast, and follow the process.
The ATO is not slowing down.
Directors must be ready, alert, and proactive.
DPNs are not just paperwork. They are real, personal, and urgent.
Take these steps now to protect yourself and your business.
Because in this new era, waiting is the most expensive mistake you can make.
Image is AI generated not real and representation of any public and private organisation.