In 2019, the Federal Parliament passed the Treasury Laws Amendment Act 2019 that allows the ATO to, among other things, disclose a business’ tax debt to credit agencies. It is meant to compel businesses to deal with their tax debt. The ATO has until recently, not used these powers, but this is beginning to change.
It has been a tactic for directors to backdate their resignation to avoid liabilities to a Liquidator, the ATO and creditors in general. But the Federal Government has brought in an Act to combat this.
Issuing garnishee notices is one of the methods the ATO utilises to recover tax debts.
It is important to speak to a professional before a garnishee notice is issued by the ATO.
The ATO has taken virtually no recovery action to collect tax debts since the start of the Covid-19 pandemic. This has led to many businesses simply racking up more debt.
Numerous businesses have unmanageable debt and will have to make difficult decisions.
We at Cactus Consulting can advise you on the available options if your business is in financial difficulty and is finding it hard to keep up with costs and expenses.
If you require any pre-insolvency advice, our team of accountants is ideally placed to provide professional advice on alternatives to bankruptcy or liquidation. It is always important to seek advice from qualified professionals.
In this article we look at the options that are available to your company if it is unable to pay its debts at the end of the JobKeeper scheme.
The Australian Securities and Investments Commission and the Australian Financial Security Authority recently released the statistics for insolvency appointments across Australia.
The government has recently extended the JobKeeper program to March 2021, albeit in reduced sums. Other measures have also been extended to 31 December.
