The small business restructuring scheme was introduced during the COVID-19 pandemic to streamline business debt restructuring and reduce costs. It has been 18 months since it became operational, and many struggling businesses have opted to take advantage of the scheme....
We successfully negotiated a client's $246,000 debt down to $30,000. The client, personally liable for her failed business's lease debts, faced bankruptcy or debt settlement. We offered $30,000 over time, which the landlord eventually accepted. The funds will come from our client's husband, who will acquire her $20,000 Landcruiser. Our client was thrilled with the outcome. Need debt settlement help? Contact us for a free consultation....
Facing unmanageable tax debt? A Personal Insolvency Agreement might be your solution. However, the ATO's vote can be pivotal in such proposals. Generally, the ATO supports arrangements without adverse features and those that ensure the Commonwealth receives a fair proportion of the debt within a reasonable timeframe. They value detailed reports from Trustees and consider a debtor's compliance history. From our experience, the ATO favors proposals from compliant taxpayers and expects more than a nominal return on their debt. Need guidance? Contact Pearce & Heers for expert advice....
Offering the ATO security as part of a payment arrangement can be risky. While it may help negotiate a payment plan, it can also lead to the ATO selling the secured assets if the taxpayer fails to pay the debt. This is especially dangerous for directors who personally guarantee company tax debts, as they become liable if the company defaults. In a recent case, a client's properties were used as security for a company ATO debt, leaving him with no equity and ultimately forcing him into bankruptcy. Seek professional advice before making such decisions....
The ATO has however, started taking recovery action to recover tax debts owed. This has included issuing a large number of director penalty notices and beginning to disclose business tax debts to credit reporting agencies....
Throughout the Covid-19 pandemic the ATO has mostly ceased taking any type of recovery action to recover debts which it was owed. Recently, the ATO’s approach to debt collection is changing and we have seen a number of warning letters from the ATO....
The ATO’s recent report on its activities for the 2021 financial year has shown that total tax debt, which the ATO considers is collectable, has increased to $38.5 billion. This compares to $26.5 billion for the 2019 financial year. ...
The ATO can issue Garnishee Notices to debtors who owe money to a company. But how does the ATO know who owes your company money and how do Garnishee Notices issued to debtors work in practice?...
If our client had contacted us earlier, we could have advised him of how to deal with his tax debt and the risks involved....
This is Case Study of what happened to a client when the ATO issued a Garnishee Notice to their bank. And what our client should have done to avoid the risk....
Back in March 2020, the Federal Government rolled out the JobKeeper scheme. The scheme was intended to assist businesses that were financially impacted by the by the Covid-19 pandemic. ...
It is anticipated that from mid-2021 onwards there will be a significant increase in insolvency appointments as various government stimulus packages come to a close....
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