Director Penalty Notice? Urgent Short Term Finance to Pay Within 21 Days

It can, where the factory's value covers the bank's payout figure and the tax debt together. We can refinance a lender after it has appointed a receiver, and the loan funds are paid to the company, which pays the ATO. What that payment means for the penalty in your name is a question for your accountant, so ask them to confirm the amounts on the notice and whether any are locked down. Timing matters, because the receiver may already be preparing the factory for sale. Ask the bank for a written payout figure today and send it to us with the director penalty notice and the ATO statement of account.

• →Receivership and administration loans

$600,000. Each notice relates to the same company debt, and any payment the company makes reduces the company debt and each director's penalty equally. The company is the borrower, and the property of either director, or the company's own property, can secure the loan.

Yes. The ATO says resigning as a director does not remove the liability, so the notice still needs to be dealt with within the 21 days. The company is the borrower and receives the loan funds, and property that you or the company own can secure the loan. Send us the notice and the company's ATO statement of account.

No. Any payment the company makes still reduces the company debt and your penalty equally. After the 21 days, the ATO may take action against you personally to recover the penalty, so call us as soon as you can. We do not give insolvency advice, so ask your accountant or a registered liquidator to review the company's position before it borrows.

It can. The ATO can offset the penalty against your personal tax refunds, issue garnishee notices or start legal proceedings. Having the company pay its debt in full within the 21 days is one of the ways the ATO says the penalty can be remitted. Call us with the notice on the day it arrives.

• →What a director penalty notice means

It can. Clearing the ATO debts of more than one company you are a director of is one of the uses we fund, as long as all borrowing on the property stays within 70% of its value. Send us both notices, each company's statement of account and the property details, and we will set out how the loans are arranged.

It can. Under the Corporations Act, a liquidator can seek to recover a payment to a creditor, including the ATO, as an unfair preference where it was made in the 6 months before the liquidation began and the company was insolvent when it paid. Whether that applies depends on the facts. We do not give insolvency advice, so ask your accountant or a registered liquidator to review the company's position before it borrows, and a solicitor can explain what a recovered payment would mean for you as a director.

Only just, with both properties. 70% of $1,200,000 is $840,000, which leaves $190,000 above the home loan. 70% of $700,000 is $490,000, which leaves $190,000 above the unit's loan. Together that is exactly $380,000, with nothing left for costs. The company is the borrower, and your home and the unit secure the loan. That depends on our valuations matching your figures, and any interest added to the debt since the notice was issued would also need room. A third property, or company cash toward part of the debt, would close that gap. The 70% limit applies to each property's existing loan as well as ours.

• →Second mortgage finance

Either can be funded. Director penalties cover the company's unpaid pay as you go withholding, goods and services tax and super guarantee charge, not company income tax. Your notice sets out the amounts it covers, and paying those is what reduces your personal penalty. One loan can clear the whole account if the property allows it within 70% of its value. Your accountant can help you decide which amount the company should pay.

No. We lend against real property, not against the trucks. A depot property, your home or an investment property owned by you or the company can secure the loan. The company is the borrower, receives the funds and pays the ATO, and the loan is repaid through an agreed plan such as a bank refinance or a property sale.

• →Transport industry finance

Yes. The security can be property owned by you or by the company, and a first mortgage over a property with no loan on it suits this. 70% of $2,200,000 is $1,540,000, so $500,000 fits comfortably. Send us the notice, its date and the factory's address.

• →First mortgage finance

The 21 days start on the day the ATO posts the notice or leaves it at your address registered with ASIC. The ATO does not count from the day you open it, so a notice that sat in the mail for a week has already used a week.

Paying the company debt in full within the 21 days is one of the ways the ATO says the penalty can be remitted, and any payment reduces the company debt and your penalty equally. Whether it is the right step for your company is a separate question for your accountant, a registered liquidator or your solicitor.

It does if the debt was reported more than 3 months after it was due. In that case, or if it was never reported, paying it in full is the only way to have the penalty remitted. If it was reported within 3 months, all four options remain open.

A payment plan stops the ATO taking court action to recover the penalty while the plan is in force, but it does not remit the penalty. If the plan is cancelled, the personal liability remains. A payment plan is not one of the ways the ATO lists for having the penalty remitted.

Yes, if you are unsure whether the company can pay its debts as they fall due. We do not give insolvency advice, so speak with your accountant, a registered liquidator or your solicitor before you borrow. That matters because a loan adds a new debt, and a payment to a creditor, including the ATO, made while the company is insolvent and within 6 months before a liquidation can be recovered by the liquidator as an unfair preference.

Yes. Directors can offer their home or an investment property, because the company may not own property. We treat a loan that pays the company's tax debt as a business-purpose loan, and we ask you to confirm the purpose in writing. All borrowing on that property, ours included, must stay within 70% of its value.

Same-day funding is possible, depending on your scenario, and we aim to settle well inside the 21 days. A caveat loan over property you already own is usually the quickest structure. Call 1300 795 175 as soon as the notice arrives.

• →$250,000 funded in under 2 hours for an existing borrower
• →$450,000 funded within 24 hours to answer an ATO wind-up application
• →$1.1 million ATO debt cleared within 48 hours

Yes. Paying a large ATO debt at once can leave a company short for its next payroll or supplier run. We lend for working capital to businesses in hospitality, retail, professional services and other industries, and it can be arranged in the same loan.

• →All industries we lend to
• →Working capital loans