How To Negotiate Tax Debt In Australia

Many companies specialise in tax matters and dealing with debts with the Australian Tax Office (ATO). If you are facing a tax debt, the best thing to do is to seek advice from tax agent to negotiate a tax debt. By keeping the ATO engaged, and getting specialist advice when needed, you have a great shot at paying the debt off. You can keeping your business completely compliant. If you know that you cannot meet your payment by the due date, you should immediately contact the ATO. Make sure that you file your business statements and tax returns in time, even if you cannot pay.

If you cannot pay the tax you owe, you may be able to negotiate a payment plan with the ATO. So that you can make payments of the tax owed to the ATO by instalments. A payment plan with the Australian Taxation Office (ATO) to pay the debt instalments can be an option. The Tax Office may declare individuals insolvent over outstanding tax debts that they owe. Including debts owed on directors’ penalty notices. Do not ignore ATO letter about owing a tax debt or fail to agree to a satisfactory repayment plan. The ATO may pursue a lawsuit against you to collect your tax debt.

If you cannot agree on a payment plan with the ATO, they may consider accepting security. Such as an existing mortgage or a bank guarantee, in return for putting off paying the debt. It is important to note, though, that you must make payments when they come due. On a realistic repayment plan, otherwise, the ATO may act to collect your debt. If you are having difficulties meeting your tax debt, a payment plan with the ATO may mitigate those difficulties. This potentially prevents large lump sum payments or bankruptcy.

Some options could include agreeing to a payment plan with the Tax Office. Refinancing an existing mortgage to cover tax debt, or potentially restructuring the business so that a fresh start is made. If paying off the debt would put you in serious financial distress, you may be able to obtain full or partial forgiveness of your tax debt.

If paying a tax debt would cause serious personal hardship, such as being unable to provide food and housing for your family. When a serious accident has prevented you from working, the office may be able to release you from part or all of your debts. Taking out a commercial loan to repay a tax debt would ensure that you are on track with repayments.

Whether you are running a business or simply a private citizen trying to make ends meet, there is nothing worse than finding yourself in the position of having a tax debt to pay off the ATO. It is likely to be accruing general interest charges, and possibly a penalty interest charge as well. Meeting your business tax obligations is a critical compliance item for businesses. Any unpaid tax debt can spiral out of control and put your organization at risk of legal consequences.

A key part of the ATO debt collection plan has been to write to individuals and businesses who owe outstanding tax debt. A warning that further action will be taken if they do not contact them and come up with a satisfactory repayment plan.

The ATO has written recently to approximately 70,000 businesses as part of two of its major customer outreach programs. Business Tax Debt Disclosure and Use of Directors Penalty Notices. The ATO is encouraging tax debtors to contact ATO to discuss options available for the resolution of tax debt. Experts say that sometimes, it is even helpful for tax agents and their clients to contact the ATO together to come up with a mutually agreeable resolution to a tax debt.

With the assistance of tax debt negotiations, you may consolidate your outstanding personal tax liabilities. Pay your current business ATO debts, or the tax debts owed on your past businesses that failed. Tax negotiators can help lodge applications to have general interest charges and penalties removed from the ATOs debt. With eight years of experience working at or as tax negotiators for ATO. Tax agents have established strong relationships with ATO decision makers, and a keen understanding of key timelines and points of escalated action.