The Australian Tax Office (ATO) had not been actively seeking to recover tax debts. This is due to the current Covid-19 pandemic and its effects to businesses. The ATO understands that many businesses have been unavoidably impacted by the pandemic.

There are signs however thing have started to change, at least for Victoria, New South Wales and the ACT. The ATO has confirmed that they will ramp up their recovery efforts and collection of unpaid superannuation will be on top of their list.  The ATO will be targeting especially businesses who fail to pay superannuation, with any overdue superannuation being payable directly to the ATO as Superannuation Guarantee Charge (SGC) – and this SGC is what the ATO will be chasing. The ATO will also be seeking to recover other tax debts, such as GST and PAYG Tax where a taxpayer has not entered into a payment arrangement.

We understand that while Australia is at the tail end of the pandemic and the economy is starting to recover, many businesses are only starting their recovery process. Many of them are no where near their pre-pandemic position.

The ATO knows this as well and has assured taxpayers that their recovery efforts are tailored to individual circumstances.

What you can do

The ATO is still very receptive of negotiations and have entered into interest free payment arrangements with thousands of taxpayers. If you or your company have outstanding tax debts and are unable to pay them, it is best that you take a proactive approach and deal with them. You may contact the ATO to negotiate a reduction or waiver of interest and penalties, and arrange for a payment plan.

How we can help

Contacting the ATO directly can sometime be a daunting task, especially when a there is a large amount of outstanding tax and lodgements. This is where we can help. We have extensive experience in helping client negotiate with the ATO. A payment arrangement may just be the key to avoid placing your company in liquidation. This was what we have done for a restaurant owner in the Sunshine Coast.

TAX DEBT SOLVED can assist you in dealing with your company’s tax debts. Contact us today for a free, no-obligation consultation.