For a significant number of companies, the ATO is their major creditor. Often for reasons outside the control of those companies’ directors a company is for a period of time unable to pay the full amount of its due and payable debt to the ATO. This can often result in serious consequences for the company, including the ATO:-

It is important for companies which fall behind in payment of their tax obligations to be proactive in their dealings with the ATO, as if discussions are not commenced with the ATO regarding the manner in which tax debts may be settled, the ATO is more likely to take the action set out above.

At Pearce & Heers we commonly assist company directors and their accountants review a company’s financial position including debts owed to the ATO, discussing risks associated with a company’s circumstances and formulating a manner in which to deal with the company’s problems. Often this may involve us making a proposal to the ATO on the company’s behalf for a payment arrangement which sometimes can involve the ATO agreeing to reduce interest and penalties which it has assessed.

Whilst we recommend that company directors are proactive in their dealings with the ATO, we also provide assistance and advice to directors who have significantly overdue tax debts and lodgement obligations including in circumstances where the ATO has already taken some form of recovery action.

Examples of Successful Negotiations with the ATO

We assist in negotiating numerous payment arrangements for companies with the ATO each year, however, some of the matters we have successfully dealt with in the past are as follows:-

Leave a Reply

Your email address will not be published. Required fields are marked *