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.
If your company has a tax debt, the ATO can issue a garnishee notice to various parties to collect that debt. This includes banks or someone who owes your company money. A garnishee notice requires the recipient to pay funds held for your company or owed to your company, to the ATO.
The continuous lockdowns in a number of states in Australia is having a crippling effect on business. Many businesses won’t survive. But if you want to give your business the best chance of survival, we can help.
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.
Do you have an investment property that is now worth less than the loan taken out to finance the purchase?
Have you sold the properties and are now owing a large amount to the bank?
Have you wondered whether the debt can be settled for less than the amount you owe?
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.
During the bankruptcy process, due to whatever the reason, a creditor has the right to remove and appoint a trustee of their choice, provided that certain steps are taken.