Tax Debt

Remission of the general interest charge – the tax consequences

When you don't pay a tax debt on time, the ATO imposes a 'general interest charge' (the GIC). The ATO has the discretion to remit the general interest charge (i.e. remove it from your account). The law is very specific about when the ATO can allow a remission. You should be careful when you make ...

Setting up your sole trader business for success

I help a lot of sole traders to deal with their tax debt. Often, they don't have a system in place to save for tax, and they come unstuck early in their business. Here are 3 steps a sole trader can take to prepare their business for tax success. The sooner you take these steps, ...

The ATO sent a garnishee notice to my bank – now what?

One of the tools in the ATO’s tax debt collection arsenal is a garnishee notice. These can be issued to anyone who owes you money, requiring them to pay that money to the ATO instead. If you'd like to know more about how the ATO uses garnishee notices and who it can issue ...

Departure Prohibition Orders – how the ATO can stop you from leaving Australia by issuing a DPO

The ATO has the power to stop a taxpayer from leaving the country if they owe a tax debt. It can do this by issuing a Departure Prohibition Order. Once the ATO issues a DPO, you cannot leave Australia until the tax debt is fully paid or you reach a settlement with the ATO. DPOs ...

The ATO can report your unpaid tax debt to credit reporting agencies

A few months ago, someone asked me whether the ATO could report a tax debt to a credit reporting agency. I thought “great question!” and wrote an article about it. The answer, at that stage, was “no - not until the ATO has a judgment against you”. My article explained all the reasons why ...

5 tips to keep your ATO payment arrangement on track [infographic]

  Need help to arrange a payment plan with the ATO? A payment arrangement with the ATO can help you to deal with your tax debt without the fear that the ATO will make you bankrupt or wind up your company. Here are 5 top tips to help you keep your arrangement on track.   RELATED ARTICLES:  ...

3 tax mistakes that send sole traders bankrupt

When you’re running a business, you have a lot of things to worry about. Tax tends to be one of the last things on your “to do list”. But you shouldn’t ignore it - getting it right can be the difference between a successful business and going bankrupt. Here are three tax mistakes that ...

5 common ways that your ATO payment arrangement can default, and what to do to avoid it

If you owe the ATO a debt that you can’t pay upfront, then you should be in a payment arrangement. This is an agreement between you and the ATO where you agree to pay off your tax debt over time in instalments. In return, the ATO agrees not to use its debt collection ...
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