ATO Tax Debts

Can I become personally liable for a debt with the ATO?

If any BAS return is not lodged within 3 months of its due date, then the directors of the company will become automatically liable for the PAYG tax withheld and any unpaid superannuation contributions.

The ATO will start its collection process by issuing the director with a “lock down notice”. As soon as a company director receives a “lock down notice” the director becomes personally liable for the debt set out within the notice. The company director will need to pay for the debt from their personal resources, but if the director doesn’t have the funds (or cannot raise the funds within a reasonable period of time), then they may need to consider one of the following options:

  • Personal bankruptcy or
  • Debt agreement or
  • Personal insolvency agreement

Call us today to discuss your insolvency needs

If you are concerned about personal liability arising from a company tax debt, then call us on 1800 003 883.

We handle all types of insolvency assignments. Our onsite insolvency practitioner has over 20 years experience in the insolvency profession. Call us today and we will happily discuss your concerns.


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