Earlier this month, the Government passed legislation to include GST in the Director Penalty Notice (DPN) scheme. This means that individual business directors can be held personally liable for unpaid GST from 1 April 2020.

What is the DPN scheme?

The DPN was launched by the Government to address underreporting by businesses on mandatory taxes and payments. Before 5 February, a business Director could be issued with a DPN for unpaid and/or underreported Pay as You Go (PAYG) or Superannuation Charge Guarantee (SCG). The scheme now includes GST.

When does it come into effect?

The ATO will pursue GST debts incurred from 1 April 2020. PAYG and SCG commitments remain unchanged and ongoing.

Who does it impact?

Business Directors. Personal liability means that the directors are now personally responsible for meeting the financial obligation of the related business GST.

What to do if you are ever issued with a DPN?

Call us to discuss how to have the DPN remitted. Directors have 21 days to act once in receipt of a DPN.What to do in preparation for 1 April?

Impeccable reporting to the ATO is absolutely critical. It is now more important than ever to report your BAS on time. Make sure your systems and processes are water tight.