Doug’s Story – a business hit by COVID-19 but denied the Cash Flow Boost

Doug runs a company in Sydney that was heavily impacted by COVID-19. The company’s work was closely tied to the Sydney airport. With travel shut down, the company saw a huge drop in its income.

The company had engaged an accountant for years to look after its lodgements. Unfortunately, for a number of personal reasons and some issues with the accountant’s workload, the company got behind with its lodgments.

The Problem

When it went to the ATO looking for the Cash Flow Boost, the ATO said it didn’t think the company was entitled. It said the company needed to have lodged certain BAS and the 2019 income tax return by 12 March 2020, which it hadn’t done. The ATO wanted more information so it could decide whether to pay the Cash Flow Boost. The accountant wrote to the ATO with some information, but honestly did a pretty terrible job. The ATO denied the Cash Flow Boost.

Doug was obviously upset by this. There were good reasons why the returns were late and he felt it unfair that this was the only reason his company couldn’t get the Cash Flow Boost. He wanted someone other than his accountant (who he has since fired) to help him look into this.

The approach

He called Hartigan Law and we had a good chat. I explained to him that the ATO has the discretion to still pay the Cash Flow Boost, even if the returns weren’t lodged by 12 March 2020. We talked about all the reasons the returns were late and started to put together supporting documents for the ATO.

I prepared an objection against the ATO’s decision. It outlined my arguments as to why the company was entitled to the Cash Flow Boost, and why the ATO should exercise its discretion to pay it. This was sent to the ATO with supporting documents.

We then waited for a response.

The outcome

About 2 weeks later, we got the good news. The ATO agreed that the company was entitled to the Cash Flow Boost. It paid over $35,000 into the company’s activity statement account that day.

Doug was ecstatic. The company can now use this money to catch up with debts that it accrued during COVID-19 and take some of the stress away.

If you have been denied the Cash Flow Boost or JobKeeper, there may still be options for you. If you’d like to have a chat about your options, call me on 1300 75 84 84 or 0486 041 442.

What Doug says about Hartigan Law

You solved my tax issues with a positive outcome successfully getting my company $35k in COVID allowances previously denied by the ATO and working with the ATO to structure a payment plan for the balance of my debt.

With the tax debt and issues I had I was sure I may have faced being made bankrupt by the ATO but thanks to Hartigan Law the weight of the tax issues has been lifted and my company is moving forward again.

I can’t thank you enough for your prompt and efficient service.

Doug | a happy Hartigan Law client