ATO moving forward on debt disclosures and director penalty notices

The ATO is currently in the process of writing to all taxpayers that may be eligible to have their tax debts disclosed to credit reporting bureaus. The letter will be sent to the postal address listed on the taxpayer’s account. The letter provides the opportunity to effectively engage with the ATO to manage debts and avoid disclosure. If payment is made in full or an acceptable payment plan is negotiated, debts will not be disclosed.

The ATO is also contacting relevant taxpayers to inform them about their potential personal liability for company tax debts under the Director Penalty Notice (DPN) program. Directors will be notified that the ATO is considering issuing them with a DPN, which makes them personally liable for the debts of their business if the company does not actively manage their debt.

It is crucial that your client engages with the ATO early before their debts become unmanageable. The ATO has information if your client needs help with paying and support in difficult times. You or your client can use the ATO’s payment plan estimator to work out a plan your client can afford.