Tax Debt

Statutory demands issued by the ATO

The way the ATO collects a tax debt differs depending on whether the taxpayer is an individual or a company. The first few steps are generally the same - phone calls, letters, perhaps a garnishee notice. For a company, the ATO may also issue a Director Penalty Notice to the directors, making them personally ...

Applying for a release from your tax debt

If you’re struggling to pay a tax debt, it’s important that you know what your options are. In certain cases, you may be able to have the ATO completely release you from your tax debt. This can happen if you would suffer ‘serious financial hardship’ if you had to pay the debt. Who can ...

5 ways the ATO collects tax debts from a company

  Need help to deal with a tax debt?   RELATED ARTICLES: Director penalty notice - personal responsibility for company tax How does the ATO collect tax debts? eBook - How to deal with your tax debt.

5 ways the ATO collects tax debts from individuals [infographic]

  Need help to deal with a tax debt? The ATO has a lot of ways that it can collect tax debts from individuals. Here are 5 tools that it can use against you when you owe a tax debt.   RELATED ARTICLES: [Video] The steps the ATO will take if it wants to make you bankrupt  ...

7 tips for a successful phone call to the ATO

If you're stressed about making a call to the ATO, then these 7 steps will help. As a tax disputes expert, I spend a lot of time on the phone to the ATO, sorting out problems for my clients. I follow these steps for every phone call I make - and you should too. 1. Call ...

How the ATO uses legal action to collect tax debts from an individual

These are the steps that the ATO takes when it starts legal action to recover a tax debt from an individual (i.e. as a sole trader, an employee, or a partner in a partnership). Different steps apply to a company that owes the ATO a tax debt. When will the ATO use legal action ...

How the ATO default administrative penalty is calculated, and what you can do to reduce it

If you don’t lodge a tax return or statement with the ATO when it is due, the ATO can send you a default assessment or a notice of estimate. This means that the ATO makes an estimate of your tax and charges you that amount. The worst thing about a default assessment or a ...

The ATO’s ‘because I said so’ rule – the conclusive evidence rule

If you find yourself with a tax debt, it is important to know about the conclusive evidence rule. You need to know that a tax debt is not like most other debts. Tax debts have a special status under the tax law. This special status weighs in the ATO’s favour. Usually, if a creditor wants ...
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