ATO Increasing Emphasis On Debt Recovery
MB+M Business Services brings you another article: ATO Increasing Emphasis On Debt Recovery
Taxpayers falling behind on tax debts and lodgement obligations can soon expect contact from the ATO in the wake of JobKeeper ending.
The change in approach comes after the ATO began sending letters to taxpayers in February to warn them of potential sterner action if they failed to make good on their obligations and had refused to get in touch with the Tax Office.
The ATO has stated that from the end of March 2021, where appropriate, penalties will resume.
Advice From The ATO – This Is What Happens If You Do Not Pay
We know that taxpayers, in particular small business operators and sole traders, sometimes have cash flow issues meaning they can’t pay their whole tax bill on time.
In the case that a tax bill isn’t paid by the due date, engage with us early so we can help you deal with your debt while it’s still manageable. We have a number of tools and services available to support you to address your bill while it’s still manageable.
We’re committed to listening to your situation and helping you get back on track.
Find Out About:.
What Happens If You Don’t Pay?
If you don’t pay the amounts you owe us on time:
- we will charge interest on your unpaid amounts
- we’ll contact you soon after the due date either by
- messages in myGov
- we’ll use any future refunds or credits to repay the amounts you owe
- we may take stronger action if you are unwilling to work with us to address your debt or repeatedly default on agreed payment plans.
We don’t currently refer selected debts to external collection agencies for collection on our behalf, but we may do so for any cases moving forward.
Make sure you lodge your activity statements and tax returns on time even if you can’t pay by the due date. You’ll avoid a penalty for failing to lodge on time and we’ll know you’re aware of those obligations.
We Are Here To Help…
Our Business Services team is available to discuss how MB+M can help you work through the process of making payments, or liaise with the ATO if cashflow is constrained. Call 03 58219177 and speak with a well versed Business Advisor.
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