ATO internal guidance on issuing DPNs to bankrupt directors

Written by Claude Haiku 5.5 from the extracted text on 14 Oct 2026. It can miss or misread redacted and scanned pages. Check the source before relying on it.

This FOI release comprises two versions of ATO internal Enterprise Knowledge Management FAQ pages on director penalty notices (DPNs): one on the DPN FAQ itself (version 18.0, April 2026) and one on DPN enquiries (version 59.0, April 2026). The guidance explains that a DPN can issue to a bankrupt director, with consideration given to whether a return from the bankrupt estate is likely for pre-bankruptcy periods. It states that a DPN need not be invalidated on bankruptcy, though the ATO may prove for the amount in the bankrupt estate with some risk of a smaller dividend. Company winding-up or administrator appointment triggers remission only of penalties not covered by a DPN issued at least 21 days earlier, or already locked down. Dividends applied to company debts reduce parallel director liability. Several passages are redacted, and no figures are shown.