The Australian Taxation Office (ATO) debt in Australia rose from $26.5 billion in 2020 and $38 billion in 2021 to an extraordinary $55 billion in 2022. The ATO paused its debt recovery during the COVID-19 pandemic, but the economy is edging back to some form of normal. This means the Australian Government is now hiking up its tax debt collection activities, urgently leaving many in need of business debt help.
Small Business Tax Help
While the ATO caused three corporate bankruptcies in 2022 after initiating legal action, small businesses owe most of the tax debt.
If you’re one of the small business owners caught in an unpaid tax debt trap and can’t see a way out, it’s vital that you talk to us at Wisdom now. We offer small business tax help if you are suffering financial hardship and have an unpaid Australian Tax Office debt that seems overwhelming.
It’s wise to avoid the ATO referring your tax debt to credit reporting bureaus since such action can ruin your credit rating, which will have an effect on your ability to successfully apply for a business loan either to pay your tax debt or other reasons down the track.
Seek Help With Your Business Tax Debt Today
The solution to your financial difficulty may be as simple as seeking the advice of our Wisdom business debt helpers. If you are suffering hardship through no fault of your own, the ATO will usually not report your tax debt to reporting bureaus. We can show you how to overcome debt in business through various avenues, such as allowing us to negotiate a payment plan with the ATO on your behalf.
Other ways we can help if you can’t pay your tax bill include offering advice about debt consolidation and business loans for ATO tax debt, which are more common in Australia than you may realise.
These solutions may be partially tax deductible. Deciding on the best action to take will depend on how much you owe the ATO, the amount of time it has been owing, and your business profile.
How A Business Tax Problem Starts
Business tax problems andtax accounting month to month, how the problem starts…
The following points explain it:
- Tax reporting to the ATO occurs each quarter – on the 28th of the following month.
- If your small business fails to pay or lodge your Business Activity Statement (BAS) or an annual tax return, an ATO debt is generated.
- If you miss a deadline, the ATO automatically adds a general interest charge (GIC) to the amount you owe.
- If the amount your business owes to the ATO falls below $100,000, you may be able to set up an ATO payment plan online.
- With the ATO now chasing debts it paused since early 2020, many small businesses could go under.
Choose Wisdom To Help Your Business With Tax Debt
If you owe it money, the ATO has the power to close down your small business with a forced liquidation or prevent your business from trading, so it’s wise to seek professional advice right now!
Should you be facing serious hardship, struggling with business finances and can’t pay your tax debts, the best solution is to call on our Wisdom professionals.
Our trusted financial experts helped many small businesses fulfill their business tax obligations. We’ve also helped countless businesses from collapse, even with imminent ATO court proceedings and wind-up orders in place. If your financial situation is dire, let us negotiate with the ATO and discuss a payment plan on your behalf to manage your tax debt problem.
If you need help understanding your tax obligations, tax law, business expenses deductions, fringe benefits tax, PAYG withholding tax, superannuation obligations and the implications of unpaid business tax debt, make an appointment today for free business debt help and advice. It doesn’t cost you a thing to have a chat and get some tax debt information! Contact us today at 02 4058 5971 – 02 4288 2525.
