Why Consider ATO Tax Debt Finance?
If you have a tax debt payment you are currently struggling with or have a previous years debt consider tax debt finance to stop ATO from taking legal action.
Reasons for Having a Tax Debt
There are a number of reasons as to why you may incur a tax debt including:
FAQ - ATO Tax Debt
Get the answers through our knowledge base to find answers to all your common debt consolidation questions
One of the tools in the ATO's tax debt collection arsenal is a garnishee notice. ... Garnishee notices are often sent to banks, requiring the bank to transfer moneystraight from your bank account to the ATO, without consulting you. The ATOshould send you a copy of the garnishee notice that it has sent to your bank.
If you need some time to pay off your ATO debt, a short-term personal loan is one solution. You borrow money from a private lender and use that money to pay offyour tax debt. You will owe interest on the loan but the interest rate will likely be lower than the ATO interest rate plus the penalty
We can issue a garnishee notice to a person or business that holds money for you, or may hold money for you in the future. This requires them to pay your money directly to us to reduce your debt. We'll send a copy of the notice to you.
For individuals, we may issue a garnishee notice to:
- your employer or contractor
- banks, financial institutions and building societies where you have accounts
- people who owe money to you from the sale of real estate, such as purchasers, real estate agents and solicitors.
For businesses, we may issue a garnishee notice to:
- your financial institution
- trade debtors
- suppliers of merchant card facilities.
Directors can incur penalties equal to their company's unpaid PAYG withholding liabilities or superannuation guarantee charge. We may issue a director penalty notice enabling us to start legal proceedings to recover the penalty.
Even without issuing a notice, we can collect the penalty by other means, such as withholding a tax refund.
If you are in debt to the ATO, you may be issued with a garnishee notice on your bank accounts with a demand to pay the ATO within a specified amount of time. Failure to do so can result in your bank accounts being frozen and a suspension on your trading accounts.
When someone is found guilty of an offence the courts can impose security bonds, community service orders, fines, additional penalties and, for some offences, prison sentences. A criminal conviction can also affect a person's employment and ability to travel outside Australia
When a court orders a company to be wound up, an official liquidator is appointed to sell the company's assets and distribute the resulting funds to the company's creditors.
We'll take action to wind up a company if it has failed to pay its debts and we have not been able to make a suitable payment plan. These circumstances may indicate that the company is insolvent and there could be a risk to us (and possibly to other creditors) that the debt will not be paid if the company is allowed to continue trading.