In 2021, the Australian Taxation Office (ATO) had $50 billion in collectable taxation debt.
Tax debt is a significant and growing problem for Australia and the ATO is now focusing their efforts on collecting this from businesses.
Small businesses accounted for the majority of that debt amount, collectively owing the ATO more than $21 billion – of that, privately owned and wealth groups indebted $7 billion, and individuals also accounted for about $4 billion.
In 2020, following the onset of the COVID-19 pandemic and the natural disasters that took place prior, the ATO granted almost $13 million in extensions for lodgements and payments – with almost 700,000 payment plans on offer for various individual circumstances.
After virtually suspending most of its debt and lodgement compliance efforts in early 2020, the ATO resumed outward engagement in July, with a major focus on delivering support and assistance.
With the ATO now stepping up its efforts to collect outstanding tax debts, more than a million taxpayers have taken action to address their past-due payments and lodgements since then.
So how can you manage this change without potentially needing to restructure your business?
For many, managing tax debt is a complex process that is often swept under the carpet until it’s too late. If you’re drowning in debt, it’s time to take charge before things spiral out of control. Nobody wants to deal with challenging tax problems, which is why we can assist.
When you decide to get help from your accountant, they will often call the ATO to request for the interest on your tax debt to be withdrawn. The problem is many accountants do not understand the thorough process of the ATO and the layers of red tape that lie between them, and the officer to whom they are speaking.
We all know that it is difficult for small companies to satisfy their financial responsibilities, and tax debt can be a source of mental stress, causing loss of sleep, and concerns for the future. At Tax Debt Solutions Australia (TDSA), we can negotiate with our well-prepared comprehensive payment proposals, so you don’t have to refinance existing loans just to pay out the tax office. Alternatively, if you’re looking to finance the tax debt, we can apply to have the tax debt reduced with a well-prepared remission application.
How TDSA Assist
The simplest approach for business owners and those owing tax money is to get in touch with professionals who can assist you to negotiate with the ATO on your behalf.
Whether you are experiencing temporary cash flow issues and getting behind on your tax payments, or are facing the fear of an ATO audit, we can assist you to get support and relief.
We start by providing you with a free assessment and recommendations tailored to suit your business.
Support and Assistance on offer
If you’re having trouble paying your tax bill and are concerned about how to reduce your debt, we can assist you with the negotiation process before the ATO comes knocking. This will allow you to safeguard yourself, your business, and your loved ones – as well as regain control of your finances.