Broadening DPN’s to GST, LCT and WET

An extension of the Director’s Penalty Notice (“DPN”) regime to GST, luxury car tax (“LCT”) and wine equalisation tax (WET”) was announced in last night’s #Budget.

All to supposedly combat #illegalphoenixactivity

Currently, directors can be held personally liable for unpaid superannuation and PAYG liabilities:

(a) where they have lodged the relevant returns with the ATO (called a “non-lockdown DPN”); or

(b) where they have not lodged the returns for a period of 3 months (called a “lockdown DPN”).

The Budget proposes (to an unknown extent) including GST, LCT and WET to this regime.

Whether this means unpaid GST (which makes up a large part of most company liquidation debts) will attract a non-lockdown DPN needs to be closely observed by Practitioners and Directors alike.

More to come once the relevant legislation is introduced into parliament …

Thanks to Geoff Green for spotting this gem.



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