Advisory and Turnaround

We commonly provide advice and assistance to company directors and individuals who have tax debts they cannot pay.

We also assist businesses with strategies to improve their profitability, often working in conjunction with the business’ accountant. Some of the areas we can assist with are:

General Meetings, Discussions and Advice

Where a taxpayer is unable to pay their tax debts, as part of a payment arrangement the ATO may request that security is provided over the taxpayer’s assets or the assets of a third-party guarantor. The most common type of security the ATO will take is a mortgage over real property. Additionally, where the ATO has refused a request for a payment arrangement, a taxpayer may offer security over assets, which may lead to the ATO reconsidering its position and granting the payment arrangement.

The ATO has standard security documents it will prepare and provide for execution.

If security is being offered to the ATO, especially if it is being provided by a third party, proper advice should be obtained as the ATO will be able to enforce a claim against the asset which it holds security over if a payment arrangement is not complied with.

Pre Insolvency Advice – Liquidation

If there is no prospect of paying a company’s tax debts we can provide advice on the liquidation process and any risks which may arise if the company is placed in liquidation

Pre Insolvency Advice – Bankruptcy

If there is no prospect of paying an individual’s tax debts we can provide advice on how to file for bankruptcy and what happens when a person becomes bankrupt including advising on any risks which may arise during the bankruptcy.

Turnaround and Restructuring

If a business has a tax debt it cannot pay, often the business owner needs to consider steps which may need to be taken to improve the business’ profitability. We can advise and assist in this regard, possibly in conjunction with the business’ accountant. The things we will look at include:

Options available to reduce general costs and expenses or increase revenue;
Options available to reduce fixed overheads, such as seeking to renegotiate lease or finance arrangements or arrange exit strategies if lease or finance agreements are no longer necessary;
Strategies to recover amounts from overdue debtors;
Strategies to arrange for the sale of assets, which may not be of core importance to a business; and
Finance options which may be available to provide immediate funds.

We may also be able to assist an insolvent company sell its business. Such a sale can be on the open market or to a new entity, which may be related. If the sale is to a related entity then the company’s directors need to comply with their duties when enacting the sale and we can assist in this regard.

ADVICE AND ASSISTANCE

If you or your company has a tax debt it is unable to pay, you should urgently obtain appropriate advice and assistance to avoid the ATO taking recovery action in respect of its debt.

If you would like us to assist you, please don’t hesitate to contact us for an initial no obligation free consultation.

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