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Case Scenarios

September Case Study

  • The client in this case were a couple who had a group of entities that all held ATO debt. The debts were spread across a Company($285,000), a Partnership ($243,000) and Personal tax debts (combined $150,000).
  • A few projects gone wrong, broken contracts, disputes and family health issues and before they knew it, they were buried in ATO debt.
  • The broker was not able to assist with lending due to the size of tax debt and couple’s
    inability to service a loan to cover the full debt.

Total combined debt $678,000

We conducted an analysis of all debts and found the debt of the entities combined, comprised of $388,000 of General
Interest Charge and Penalties. The company was drowning in debt that continued to increase due to the level of daily compounding interest
and penalties. All payments made by the couple were being absorbed by compounding daily interest while the primary debt remained unchanged.


  • After spending an extensive amount of time with the couple getting a grasp of the full situation, we believed there were
    grounds to apply for a remission of interest and penalties.
  • We submitted an application for a full remission of interest and penalties and a payment proposal across all entities.
    The company’s primary debt was to be paid out in full on the settlement of a sale of a property.
  • Long term payment arrangements were proposed for the remaining entities.

All payment proposals would fall over if the remission was not granted.


  • I received a call from an officer of the ATO wind up team who advised me he had reviewed the application and
    deemed that a full remission of $388,000 was warranted. This decision changed the lives of many people in WA and
    left the couple very emotional.
  • This meant the company was no longer insolvent but strong and trading well again.
  • They had given up hope of being able to hand their business down to their children and now this dream was once
    again a reality.
  • Staff were not let go as expected and this company was now hopeful of a brighter future for their family and

If you or anyone you know need an expert tax debt  advisor,  contact Tax Debt Solutions Australia.