Posts Tagged: tax debt

Making a deal with the ATO for your tax debt

If you owe a large tax debt you might be wondering if you can 'cut a deal' with the ATO. I've had this conversation with many clients over the years. 'If the ATO gets rid of the interest and penalties, I can pay the balance in one lump sum' Or: 'Wouldn't the ATO prefer ...

Types of Director Penalty Notices (DPNs)

A director penalty notice (DPN) is a notice that the ATO can issue to a director of a company that has unpaid debts. There are two types of DPNs – a standard DPN, or a ‘lockdown’ DPN. A DPN can make the director personally liable for unpaid PAYG withholding tax, a superannuation guarantee charge ...

A tip to help you with your ATO negotiations

Negotiating with the ATO about a tax debt can be tough. Here's one tip to help you in those negotiations. https://www.youtube.com/watch?v=SJTMbC4NBOU Hi, it's Catriona from Hartigan Law. In this video, I'm sharing a tip to help you in your negotiations with the tax office, whether that be for a payment plan or a remission of general ...

All about the general interest charge

If you have a tax debt, then you already know that the ATO charges you interest on it. This is the 'general interest charge' (also known as the GIC). The rate of the general interest charge is calculated each quarter. It is roughly equal to around twice a standard mortgage rate. The exact ...

What happens to a tax debt during an objection or appeal?

If you've been audited by the ATO or received an estimate of tax, then you may not agree with the new amount the ATO says you owe. You have options for disputing these debts. Usually, the first step is to object to the ATO's decision about the debt. If the objection isn't decided in ...

Looking for a template letter to make a remission request to the ATO?

There's a template letter online for making a remission request to the ATO for the general interest charge. It's designed for accountants to use for their clients. I do not recommend using this template letter unless you're an accountant who knows what you're doing and you have solid writing skills. Why don't I recommend ...

How the ATO’s general interest charge works

The ATO charges the general interest charge (the GIC) on most unpaid tax debts. There is legislation that sets out how to calculate the rate of the general interest rate. You can read more about that here. Daily compounding The rate determined under the law is an annual rate. However, the general interest charge imposed by ...

The rate of the ATO’s general interest charge

The ATO charges general interest charge on most unpaid tax debts. The rate of the general interest charge is set each quarter. The ATO usually announces the rate two weeks before the start of the quarter. Recent general interest charge rates In recent times, the rate has hovered around 8 to 9%: QuarterAnnual rateJuly – September ...
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