The Federal Court’s recent decision in Hall v CAP Security Services Pty Ltd [2023] FCA 1237 highlights an interesting and practical solution for former directors who receive a director penalty notice after their directorship has ended.
Director penalty notices (DPNs)
The Australian Taxation Office (ATO) can issue a DPN to the director of a company where the company has failed to comply with certain reporting obligations and payments under the Taxation Administration Act 1953 (Cth). The effect of receiving a DPN is that a director will be personally liable for the relevant tax or superannuation debts of the company unless, within 21 days of the DPN being issued by the ATO, they:
- rectify the non-compliance of the company;
- put the…
