How much do you owe the ATO?

In Australia one of the biggest triggers for Company Liquidations is the Australian Tax Office.

The ATO has started sending out notices to business with tax debts of over $100,000 that are overdue for more than 90 days.

Even during these hard times, the ATO is still on the court lists winding up company’s for not paying their taxes.
- Do you have all your tax obligations up to date?
- Are you aware of what your tax liabilities are?
- Do you have a payment plan and now, post COVID you can’t meet your obligations?

If you are unable to meet those ATO instalments, you're at risk of the ATO taking debt recovery action against your business.

These could include:
- Raising assessments for general interest charge and late lodgement penalties, increasing your tax liabilities;
- Reporting a default to credit reporting agencies;
- Director penalty notices to company’s directors for unpaid Superannuation, PAYG and GST;
- Issuing garnishee notices to your company’s bank or debtors requiring them to pay your company’s money to the ATO; and/or
- Issuing a statutory demand and commencing winding-up action for the court to appoint a company liquidator.

Things can become very difficult for you once the ATO commences debt recovery action, you may be left with just 21 days to pay your debt in full, to prevent your company being wound up by a court order. All of these could spell the end for your business, so it’s crucial to act quickly.

The good news is, if your business has a tax debt it can’t pay, Wisdom can help show you a range of different options for your business. Every business has a different set of circumstances, we promise to tailor a plan for you! If you have tax debt please reach out to us to discuss your options. We are passionate and pride ourselves on our ability to help you resolve your tax debt so you can get you back to where you should be… in business! Wisdom can ease your stress levels, and help regain control of your finances—and your life. #drawalineinthesand