Often the ATO is a taxpayer’s major creditor, or major problem creditor.

If you or your company fall behind in the payment of tax, it is important that you are proactive in dealing with the ATO. The ATO will take recovery action to collect the debt if you do not take steps to resolve an unpaid tax debt, such as:

  • Issuing a Director Penalty Notice;
  • Issuing a Garnishee Notice (which can be issued to both companies and individuals);
  • Placing your company in liquidation; or
  • Making you bankrupt.

We have assisted numerous individuals and company directors review their situations, discuss the risks involved and formulate a proposal to the ATO for a payment arrangement. In most circumstances this will involve requesting that the ATO agree to the payment of debts owed over time and reducing or waiving claims for interest and penalties.

Security Over Assets

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

The ATO has standard security documents which 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.

Successfully Negotiated ATO Payment Arrangements

Examples of some of the payment arrangements we have successfully negotiated in the past include:

We arranged a payment arrangement for several hundred thousand dollars for a retail business after the ATO had issued director Penalty Notices which had expired. The company’s directors were already liable for a large amount of the company’s PAYG Tax as a result of the expired Director Penalty Notices so they avoided personal liability as a result of the ATO allowing the company to pay amounts owed over time (which the company subsequently did).

We assisted a transport company negotiate its ninth payment arrangement for debts which totalled nearly half a million dollars. This included the ATO agreeing to write off some of the interest and penalties they had charged to the company.

We assisted and advised a group of civil contracting companies including negotiating a payment arrangement with the ATO which resulted in the ATO withdrawing a winding up application which it had filed against one of the companies which would have resulted in that company being placed in liquidation.


If you or your company has a tax debt which 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.

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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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