One accountant has said that as directors face increased scrutiny on their tax liabilities, they should act quickly and consider insolvency to manage DPNs to reduce personal liability.
Amid an increase in director penalty notices (DPNs) being issued by the ATO, tax advisers must be open to exploring insolvency when their clients are faced with these notices to reduce personal tax liability, said Jason Robinson, accountant at Future Advisory.
The Tax Ombudsman has found a 136 per cent annual increase in the issuance of DPNs, with the Tax Office issuing more than 84,000 DPNs to directors of approximately 64,000 companies in the 2024–25 financial year.
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