The coronavirus has already had a massive impact on businesses with more financial fallout to come. So, what should businesses with tax debts do? And how can directors minimise the financial impact on both their business and themselves?
We have seen broadly two types of businesses with tax debts since the start of the coronavirus pandemic:
- Businesses whose tax debts arose after January 2020
- Businesses which had unmanageable tax debts prior to January 2020
For each of these types of businesses there is going to be different options and solutions available.
1. Businesses whose tax debts arose after January 2020
If your business had little or no tax owing in January 2020, but it is now unable to pay its tax going forward then the best thing to do is talk to the ATO and take advantage of measures they are offering around tax deferments. The full measures available to businesses are set out on the ATO’s website. However, they include:
- Deferring payment of tax by up to six months;
- Remitting any interest and penalties, incurred on or after 23 January 2020;
- Working with businesses to help them enter into low interest payment plans; and
- Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter.
Your accountant is probably the best person to talk to about seeking assistance from the ATO. However, if they can’t assist, or if you think you just cannot pay the tax you owe, then get in contact with us to look at the solutions available.
2. Businesses which had unmanageable tax debts prior to January 2020
If you had an unmanageable tax debt prior to January 2020 and coronavirus has had a further impact on your business, then it is going to be more difficult to rescue your business. However, that does not mean it will be impossible or that there are not other solutions available.
In these circumstances you need to get urgent professional advice and assistance and we can help.
Make sure you keep making ATO lodgements
No matter what category your business falls into you still need to keep lodging BAS and if you don’t pay superannuation, Superannuation Guarantee Charge Statements. This is because failure to lodge within relevant timeframes can lead to personal liability for Director Penalty Notice debts which now apply to GST.
Contact us for assistance
No matter what category your business falls into the professionals at TAX DEBT SOLVED can help with your tax debt problems. So, contact us for a free, no-obligation consultation, contact us here.