- John and Jenny both had personal Income Tax debts totalling $300,000 and was referred to TDSA by their broker.
- The debt existed due to promised bonuses from a previous law firm that John practised at, that were never paid. They also had significant ongoing costs required for the much-needed care of their 3 children, 2 of which live with ADHD. One child in particular is highly dependent on assistance during school and requires a full time carer.
- In addition, they had high mortgage repayments that left very little room to offer the ATO a payment arrangement to cover the full debt.
- As a practising lawyer, bankruptcy just wasn’t an option for John.
- The family house was to be placed on the market and the sale would release equity that would pay the debt down significantly.
- We prepared and lodged a comprehensive application for a payment arrangement and a full remission of all interest and penalties.
- The ATO approved the remission application reducing their debt by $60,000.
- The ATO also agreed to a 6-month review arrangement to allow for the sale of the house which is expected to raise sufficient funds to be able to offer the ATO a sizeable upfront payment thereby reducing their monthly instalments considerably.
- This outcome provided John and Jenny with the peace of mind. They no longer live with the constant stress and fear that the ATO would commence bankruptcy proceedings against them.
- TDSA re-engaged with the ATO once the sale of the house settled and negotiated a long-term payment arrangement that was comfortably sustainable for the family.
Testimonial from Broker
“Hi Josie, just thought I would share John’s response…news was met with a long emotional silence, then a deep relieving breath, and then a quiet thank you. You don’t know John but suffice to say he is very grateful. Well done and thank you. You’ve done a good thing for a good person”.