Get on the front foot with business tax debts.

The ATO have advised us that they have resumed their debt collection activities in the small-business sector after a pause last year during lockdown. This means businesses need to really focus on clearing the debt as the ATO pursues harder collection measures.

Getting on the front foot and making contact with the tax office to reduce your tax debts now is the best way forward to setting your business up for a positive year of growth.  If cashflow is tight then entering into a payment plan is a good way of managing the debt.

Contacting the ATO, before they contact you (or us, on your behalf), is imperative to prevent enforcement action.  Such action might include garnishee notices, director penalty notices (making directors personally liable for the company’s tax obligations) and the more serious actions of wind-up applications and bankruptcy are not off the table.

If you need assistance in managing your tax debts, or you would like to discuss your options, please get in touch with us.