Take Back Control Of Your Tax Debt
Take control of your tax debt to avoid business shut-down
The Australian Taxation Office (ATO) is one of the biggest triggers for company liquidations – and personal bankruptcies. So, if you’re struggling with overwhelming tax debt, it’s time to take control and deal with the situation before they come knocking.
As tax debt experts, we work to help you manage your tax debt by negotiating relief with the ATO for you and formulating a repayment plan. We can also help you refinance existing mortgages to pay out your tax debt or potentially restructure your business.
The key to success and avoiding the ATO taking steps to recover the debts is communication and transparency. Even seemingly insurmountable tax debt can be overcome when dealt with openly and honestly. Our aim is always to look at ways to protect your assets, preserve your wealth, and ease the mental strain.
The tax debt management process
Initial Tax Debt Review
Once you’ve engaged our tax debt team, our first job is to review your tax debt to ensure you’ve calculated the outstanding amount correctly. Plus, we provide strategic tax debt management advice.
ATO Negotiation And Plan
We act as a mediator between you and the tax office. We also work to figure out a viable repayment plan, pulling together any financial documents and cash flow projections required by the ATO.
Advice For A Debt-Free Future
Once a repayment plan has been mutually agreed on and your tax debt has become manageable, we offer strategic advice to ensure your business is structured to meet its future tax liabilities.
Chris owns a family glass company that had been struggling due to increased local competition.
Because of the drop in business, it has been hard to maintain enough cash flow to maintain day to day operations. As a way to access more cash, he had been treating the ATO as a bank, using GST paid by clients instead of holding it back to pay as part of his BAS.
Chris knew this wasn’t a great solution but feeling backed in a corner, it seemed like a quick fix until the ATO debts started mounting.
Chris felt regretful of his situation and blamed himself, but realised he needed help to get out of it. He didn’t want to let his employees go short or lose the business. He sought our help as tax debt experts, and we reassured him that the situation could be rectified.
We worked out he had a tax debt of approximately $50,000. We then spoke with the ATO, explaining the situation and proposed a repayment plan, which included selling some non-essential assets.
Repayment Plan Was Agreed
The ATO accepted a monthly repayment plan, plus an initial upfront payment.
The Stress Dissolved
Chris didn’t have to worry about dealing with the ATO or action being taken.
Lessons Were Learned
Thanks to our advice, and working in conjunction with his accountant, Chris made changes to ensure he could meet future liabilities.
You're In Safe Hands
At Revive Financial, we care about the stress and impact being in debt has on your wellbeing. We want to help you take back control with no judgement, just a helping hand.
Revive Financial is proudly Australian owned and lead by a team of Chartered Accountants. Our qualified team have been helping Australians become debt free since 2005.
Our dedicated team have been trusted by over 10,000 Australians to help take back control of their financial futures. It's what we do best so you can rest assured.
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Download Our eBook
Learn how to turn negative to positive today with a FREE ebook produced by our team of finance professionals, just for you. This helpful guide outlays all of the debt management options available and will assist you in understanding how you can take back control of your financial future.
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Frequently Asked Questions
How much will a Tax Debt Solution cost?
The costs vary but there is no charge for the initial consultation with one of our financial professionals. You are under no obligation to proceed at this point. If you choose to do so though we will be totally transparent and upfront about the cost of resolving your tax challenges. Our prices are reasonable and fair, so you don’t have to worry about any surprises or hidden costs.
Will the tax office come after me personally for my company’s tax debt?
No, as long as you act early.
In some circumstances, directors can be held personally liable for their company’s superannuation and BAS debts owed to the Australian Taxation Office (ATO).
The ATO can seek to make a director personally liable for these debts under an ATO director penalty notice. Appointing a liquidator or administrator to your company can avoid personal liability for these debts:
- for periods where a debt remains unpaid, the respective BAS or superannuation guarantee charge statements have been lodged on time; and
- a director penalty notice hasn’t been issued or, if it has been issued, an administrator or liquidator is appointed within 21 days of the date of the notice.
- Director penalty notices are issued to the director’s personal residence, which is recorded with ASIC, so it’s important you keep your details up to date.
In our experience, while the ATO is keen to recover money owed, the primary reason for issuing a director penalty notice is to encourage a company that’s not meeting its lodgement and/or payment obligations to deal with it promptly.
So, if your company isn’t meeting its obligations, and you want to avoid a director penalty notice, deal with your company’s situation before the ATO forces you to.
What do I do if i receive a Directors Penalty Notice?(DPN)
You have 21 days to take action from the date of the DPN before the ATO can/may take action against you to recover the penalty amount.
If you're unable to pay your debt with the ATO it's important you act swiftly and either reach out to your lawyer, or our qualified team of financial professionals at Revive Financial
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Director Penalty Notice – What they are and how to avoid them
With many businesses still suffering from the financial fallout of COVID-19 and the ATO already tightening up debt recovery in early 2021, directors are at a higher risk of being made personally liable for outstanding tax debts and receiving a director penalty notice (DPN).Read more