Case Studies
How we have achieved results for our clients facing tax debt and legal recovery action.
CLIENT QUOTE:
- "I couldn’t imagine how you managed to achieve that."
How a director achieved a $50k reduction
CHALLENGE:
- Our client, a manufacturer of bespoke warehouses for international wholesalers, was beset by the woes of the international border closures and the rising cost of building materials. They had amassed a debt of some $300,000, for which the Director had been issued a Director Penalty Notice (DPN), a form of ATO legal action.
SOLUTION:
- An active payment arrangement would shield the Director from recovery action from the ATO on their Director Penalty Accounts.
RESULTS:
- Despite the DPN, we achieved a reduction of over $50,000 in interest charges and negotiated a 36 month, interest free arrangement on the remaining debt.
Tax Assure sticks by a client ravaged by COVID-19 and the bushfires to get the outcome they needed
Challenge:
Our client works in regional VIC and NSW. They were ravaged by the bushfires, then unable to cross the state border through COVID. Problems had not stopped coming for them.
Solution:
The ATO was reluctant to agree to a payment plan because they were not confident our client would recover. However, we stuck with our client, made short-term arrangements, and over 10 months successfully remitted over $50,000 in interest charges. Finally, we were able to negotiate a payment plan for nearly $180,000, with minimal initial payments, gradually increasing as the business gathered steam.
Results:
A client that we had assisted for almost a year to reach the point where they are in a payment arrangement to pay off their whole debt demonstrates that while not every case is cut and dry, Tax Assure works with our clients until their debt is resolved.
Client Quote:
"It has been a pleasure, I hope we meet again, only not for tax reasons."
An NDIS provider learns his staff had failed to meet ATO obligations, gets a chance to rebuild the business.
Challenge:
An NDIS provider, who assists disabled and disadvantaged First Nations former prisoners to move into independent living accommodation, found that his office staff had failed to ensure that the company’s ATO obligations were being met, coupled with the devastating impact of COVID lockdowns on a service that requires significant face-to-face contact with vulnerable and complex clients. Our client could not avoid a debt of $235,000 and needed time to rebuild the business in order to pay it back.
Solution:
We applied our process of negotiating tax debt and a payment arrangement with the ATO.
Results:
We were able to achieve a remission of over $20,000 of interest that had accrued, and negotiated a special interest-free Payment Plan, with reduced payments for the first 9 months to give our client the ability to rebuild the business unencumbered by the stress of the ATO.
Client Quote:
"I can’t think of anything more you could have done, so thank you."
A 10-year-old debt re-raised by the ATO managed with tax debt negotiation
Challenge:
A client of ours was advised that a debt of over $32,000 from 10 years ago had been re-raised by the ATO and was being pursued. Our client suffers greatly with stress and the pressures of looking after a family who struggle with addiction and mental health.
Solution:
Although our client’s accountants were advised that there were no available interest charges on the account, we were able to work through the debt in detail with an ATO officer.
Results:
We discovered $9,000 available for remission, reducing the debt by almost a third. We were then able to negotiate a long-term arrangement for the remaining balance, with weekly instalments that our client was comfortable meeting within her modest wage.
Client Quote:
"[Tax Assure] made the process so comfortable and easy."
A struggling restaurant owner gets back on her feet with an ATO payment arrangement
Challenge:
A restaurant owner from the Vietnamese community in Perth, unable to bear the impact of lockdowns and the state border closure, came to Tax Assure for help in managing the business’ tax debt while she was trying to rebuild the business. With a debt of over $200,000 and the restaurant only open for one meal a day, the owner felt completely hopeless.
Solution:
We applied our process of negotiating tax debt and a payment arrangement with the ATO.
Results:
We were able to negotiate a repayment schedule with lower monthly payments for the first 19 months to provide her with sufficient breathing space to get back on her feet, and were also successful in seeking a remission of $60,000 interest charges that had accumulated on the debt.
Client Quote:
"I wasn’t able to sleep before and now I feel much more relaxed."
A contract worker can stress less about tax debt and focus on her new job
Challenge:
A contract worker who had built up debts of approximately $180,000 after losing work, and being forced to move house through the pandemic, came to Tax Assure terribly stressed by the payment plan that the ATO had insisted she agree to, with large upfront payments.
Solution:
We applied our process of negotiating tax debt and a payment arrangement with the ATO.
Results:
Tax Assure were able to negotiate a Payment Plan that suited our client’s monthly cash flow, taking the stress out of the debt repayment and allowing her to focus on her new job.
Client Quote:
"You guys are really great at what you do. I’m so glad I found you."
A defrauded finance broker finds a way to manage tax debt
Challenge:
A finance broker for agricultural machinery lost millions of dollars when he was defrauded in a finance agreement. While paying to go through the subsequent legal process his company racked up $270,000 in tax debt.
Solution:
We applied our process of negotiating tax debt and a payment arrangement with the ATO.
Results:
After finding us through Linkedin, we were able to help our client to reduce the debt by $45,000 of interest charges that had accumulated on the account, and to negotiate a payment arrangement with 6 months of minimal repayments to aid cash flow following COVID-19 and the floods.
Client Quote:
"You guys couldn’t have done a better job. This really takes the pressure off me after a horrible 2 years."
A height safety specialist affected by COVID-19 gets much needed breathing room
Challenge:
Our client, a height safety specialist, initially came to us in May 2021 when a significant debtor had failed to pay their invoices equivalent to $800K. At that time the ATO debt was accumulating, and the CFO didn't know how to balance the demands of the ATO with the company's cashflow.
Solution:
At that time, we successfully negotiated a sustainable payment arrangement for the ATO. The client then returned to us in February 2022 as they fell victim to the Omicron variant that swept across their sites causing closures and labour shortages in December and January.
Results:
We were again able to negotiate a new Payment Arrangement for the client within the company's cashflow, accounting for potential future downturns if COVID impacts business again.
Client Quote:
"[I am] amazed at how efficiently Tax Assure work!. "
A Victorian panel beater avoids ATO debt recovery action
Challenge:
With over $1.5M of ATO debt consisting of current company and previous company debts for which he was personally liable as a director, our client was facing serious debt recovery action from the ATO. As a panel beater in Victoria who was significantly impacted by COVID-19, our client did not have available funds to meet the large repayments that the ATO were demanding and so he didn’t know what to do. Our client said that prior to our engagement he spent 6 months trying to speak to the ATO and got nowhere.
Solution:
We were able to seek a hold on the debt recovery action whilst we engaged with the client to review his financial capacity.
Results:
We were then able to negotiate a tailored payment arrangement to suit our client’s financial position whilst his business recovers from COVID-19, whilst also allowing him to continue meeting his ongoing obligations.
Client Quote:
"Your skill and your relationship with the ATO really helped me – thank you!"
A carpenter gets his tax situation back on track
Challenge:
A sole trader carpenter in Queensland came to us with an ATO debt of $75,000 of which $26,000 was interest after experiencing 5 years of traumatic events in his personal life.
Solution:
Having seasonal work meant that we needed to tailor a payment arrangement to fit his fluctuating income.
Results:
We achieved a long-term payment plan adjusted to his cashflow for each month as well as a full remission of interest.
Client Quote:
"[I] could not have faced the ATO without your help and I really really really appreciate it!. "
From stressed and afraid to sleeping well at night
Challenge:
A pipe laying company in rural NSW accumulated $300K in debt as a result of mismanagement by a rogue director, compounded by effects of the COVID-19 lockdowns. The client, stressed and scared by the demands of the ATO, was referred to us by a Business Turnaround specialist.
Solution:
We applied our process of negotiating tax debt and a payment arrangement with the ATO.
Results:
We achieved a remission of $25,000 general interest charges, as well as a long-term payment arrangement with low initial payments to reflect the current financial difficulties faced by the client.
Client Quote:
"[I] will finally be able to get some sleep at night now"
A Sydney recruitment firm overcomes $1.4M tax debt
Challenge:
A recruitment firm in Sydney supporting the world’s highest growth tech firms accumulated $1.4M in tax debt as a result of mismanagement by its internal COO at the time, compounded by effects of the COVID-19 lockdowns across the world when, overnight, 75% of all its business was lost.
Solution:
The client was unable to meet the 50% upfront payment the ATO was demanding, and was introduced to Tax Assure by a finance broker to negotiate the tax debt and arrange an appropriate payment plan.
Results:
We achieved a reduction of $330,000 of general interest charges and penalties, as well as a long-term payment arrangement with low initial payments to enable the company’s cash flow to strengthen over time.
Client Quote:
"Thank you so much for your help. It’s a fantastic outcome. You’ve been a pleasure to deal with and provided a real level of comfort during a stressful period."
If at first you don’t succeed, try again with Tax Assure
Challenge:
A tyre dealer with service garages had been growing before the pandemic, and then suffered greatly as a result of struggling to import tyres, paying increased shipping costs and the effect of the lockdowns on the garages. With a tax debt over $500,000, the Commissioner began steps towards ATO legal action when the director was issued with a DPN, making him personally liable for the outstanding debt. The company had tried several times to negotiate a payment plan unsuccessfully.
Solution:
Tax Assure investigated the client’s circumstances with the ATO and prepared relevant applications using our knowledge of the tax office.
Results:
We were able to negotiate an interest free plan on terms that suited the company’s cash flow, with a full remission of over $70,000 interest charges that had accrued on the debt to that point.
Client Quote:
"I cannot believe you have done this. You are a superstar."
How we optimised an existing ATO payment plan
Challenge:
Our client, a height safety specialist, initially came to us in May 2021 when a significant debtor had failed to pay their invoices equivalent to $800K. At that time the ATO debt was accumulating, and the CFO didn’t know how to balance the demands of the ATO with the company’s cash flow.
Solution:
Tax Assure successfully negotiated a sustainable payment arrangement for the ATO. However the client returned to us in February 2022 as COVID-19 caused site closures and labour shortages for the business, further tightening cash flow.
Results:
We were again able to negotiate a new payment arrangement for the client within the company’s cash flow, accounting for potential downturns if COVID-19 impacted the business again.
Client Quote:
"I’m amazed at how efficient you were at finding a solution."
Recovering interest and penalties leaves our client “speechless”
Challenge:
A self-made marketing expert, whose ATO obligations escaped him for 20 years, found himself with almost $200,000 of interest charges that built up over that time. With everything that went on in his life, he was never able to get his head around what was required of him, and as time went on, he became more fearful and buried his head in the sand more.
Solution:
Our client was able to bring his lodgements up to date, and engaged Tax Assure to help him recover the interest charges.
Results:
We fought the matter for 2 years and left our client “speechless” when we were in the end successful in recovering nearly $200,000 of interest charges.
Client Quote:
"I thought there was no hope. I had already had applications refused."
When the ATO demands upfront payment
Challenge:
A recruitment firm in Sydney supporting the world’s highest growth tech firms accumulated $1.4M in tax debt as a result of mismanagement by its internal COO at the time, compounded by effects of the COVID-19 lockdowns across the world when, overnight, 75% of all its business was lost.
Solution:
The client was unable to meet the 50% upfront payment the ATO was demanding, and was introduced to Tax Assure by a finance broker to negotiate the tax debt and arrange an appropriate payment plan.
Results:
We achieved a reduction of $330,000 of general interest charges and penalties, as well as a long-term Payment Arrangement with low initial payments to enable the company’s cash flow to strengthen over time.
Client Quote:
"Thank you so much for your help. It’s a fantastic outcome. You’ve been a pleasure to deal with and provided a real level of comfort during a stressful period."
