Let us make this very clear. We don’t want to scare you, BUT, if the ATO has sent you a notice, DO NOT IGNORE IT! Call us to discuss your next move.
The Australian Tax Office has significant powers of debt recovery. They will implement them if you ignore their notices. If you find yourself at odds with the tax office, you have options, but they become quickly limited when you ignore the following:
If you’ve entered into a payment arrangement with the ATO, it’s really important that you don’t miss a payment. Our role here is to keep you on track so that you don’t default and the ATO doesn’t start collecting its debt via your bank account (without your consent), through winding up your company or declaring you bankrupt.
The ATO takes it seriously if you don’t meet your PAYG (Pay as You Go) and SGC (Superannuation Guarantee Charge) obligations. If you are a director of a company, the ATO can recover amounts from you personally, including withholding your tax refund.
If the ATO sends you a Garnishee Notice, it’s letting you know that they are going to the people who hold money for you, and they will collect it from them. This may mean they contact your bank or financial institution, your trade debtors, or the suppliers of your merchant card facilities. Depending on the size of the debt, this could affect your ability to pay your staff, or suppliers.