If your business has overdue tax debts or outstanding lodgments the ATO is now taking a stricter approach.
Recent years have seen a surge in collectable debt with more than two thirds of these debts represented by small-medium businesses. Throughout the pandemic there was a focus on stimulus payment and tax assistance and the time has now come to return to a stricter approach to meeting tax payment obligations.
If you do have outstanding debt that you haven’t organised a payment plan the ATO may take further action – including having your tax debt reported to registered credit bureaus (CRBs), a claim or summons with the relevant court of your state or territory, or a director penalty notice.
If your business tax debt is $100,000 or more and overdue by more than 90 days and you’re not currently engaged with ATO to manage this debt, then you are at risk.
The ATO advises it is looking to make things fairer for all businesses by reducing unfair financial advantage, making debts more visible, and encouraging taxpayers to engage with them to manage debt.
There are many reasons why business owners can find themselves in this situation, it’s not uncommon but it can be stressful and challenging to know what to do next.
The good news is that there are ways to avoid your tax debts being reported and other actions being taken. Even if you have already been reported, there are ways to be removed.
Engaging with experienced tax advisory experts can help you navigate your tax debt, whether it’s through insight and advice or to act as an intermediary between you and the ATO.
Doing nothing is no longer an option and the consequences will have long lasting effects for your business.
Need help?
Arrange a complimentary and obligation-free confidential discussion with a tax expert from Matthews Steer Accountants & Advisors.
No cost, no obligation.
Reach out to us on 03 9625 6300 or email info@matsteer.com.au