Situation

Our client established their own business in the LED technology sector. 

In 2020, the client suffered severe losses when COVID-19 restrictions and event cancellations halted
operations. Despite efforts to shift operations to the UK, the pandemic’s ongoing disruptions significantly reduced revenue. This coupled with personal struggles, placed emotional and financial strain on their family, diverting attention from tax matters through no fault of the client.  

Strategy

We conducted an analysis and found the tax debt comprised of approximately $130,000 of General Interest Charges (GIC) and Failure to Lodge Penalties (FTL). This situation left the client feeling hopeless about the future. 

TDSA met with the client and after learning about the circumstances in much more detail, we prepared and lodged a comprehensive application for a remission of the GIC and FLT penalties. 

Success

After a lengthy time of discussing the clients’ case with the ATO, we received a phone call from an ATO officer advising us that they had reviewed our remission application and a full remission of $128,000 was granted, putting their account into a credit. 

The successful remission of GIC and FTL penalties alleviated the client’s financial hardship and not only placed them in a position to meet future obligation but to look forward to the future without the taxation debt placing pressure on their cash flow.