A 65 year old client was recently referred to Tax Debt Solved by his tax accountant. We managed to negotiate a reduction of more than 40% in penalties and general interest charges (GIC) imposed by the ATO. Our client managed to avoid bankruptcy. Here’s how.

Background and Initial Meeting

Our client was a sole trader for more than a decade, prior to moving into full time employment. After more than a decade of not keeping his tax lodgements up to date, he instructed his tax accountant to lodge his income tax returns and BAS with the ATO. As a result, our client had a total tax debt of approximately $115,000 including penalties and GIC.

An initial meeting with the client provided the further information in relation to our client’s circumstances:

  • He was now a salaried employee;
  • The ATO had issued a Garnishee Notice to a bank where his wife had an account;
  • The ATO had appointed debt collectors to recover the tax debts;
  • The only asset that he had was a mortgaged property that he held jointly with his wife. The property had an equity of approximately $360,000; and
  • He had less than $20,000 in his superannuation.

Options Available

Due to the circumstances, the options available to our client were limited. These include:

  • Borrowing money from family and friends;
  • Selling the property;
  • Refinancing the property; and/or
  • Negotiating a payment arrangement with the ATO.

Successful Outcome

Based upon our advice, the client agreed to a combination of negotiating a payment arrangement with the ATO, and refinancing the property. We contacted the ATO on behalf of the client and:

  • Requested that any recovery action be temporarily put on hold while we assisted the client in settling the tax debt; and
  • After some negotiation, the ATO agreed to remitting part of the penalties and GIC totalling $31,000.

We also introduced our client to a mortgage broker who we work with who specialises in helping obtain finance for people with tax debts. The client successfully refinanced his property and part of the refinancing proceeds were used to pay the ATO to satisfy the client’s tax debt.

Contact Us For Assistance

If you have a tax debt you can’t pay and you would like to consider all options which may be available, please contact us for a free, no-obligation consultation.

Struggling with Tax Debt?
We can help.  So call us today.

Contact Us

We’re here to help so contact us now for a free no obligation consultation.

Tax Debt Solved
GPO Box 691
Brisbane Qld 4001

Email: mail@taxdebtsolved.com

Fax:  07 3221 8885
Phone: 07 3221 0055

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