Stop Legal Action

Stop Legal Action

A tax debt is a stressful thing. It can often become overwhelming.

We know and that’s where we can help.

Instead of hitting the panic button, call us instead.

As the experts in the handling of a tax debt, we know the right path ahead.

If you don’t manage your tax debt correctly, you are at risk of legal recovery action against you and your business. These actions can include:

  • Credit Reporting
  • Director Penalty Notice
  • Garnishee Notice
  • Wind Up Proceedings
  • Bankruptcy 

The ATO has very specific outlines as to what action will be undertaken to recover your tax debt amount.

The important thing to know in all this is that engagement with the ATO is the most crucial of all. Delaying or ignoring your tax debt can and will make matters worse.

The ATO criteria for reporting business tax debts

If your business meets certain criteria, the ATO may disclose your debt information to credit reporting bureaus (also known as credit reporting agencies).

They will not report your debt information to credit reporting bureaus if you are already engaged with the ATO in managing your tax debts.

That is where the experts here at Tax Assure can take care of things for you. The sooner you engage us, the sooner you can relax knowing that your debt is being looked after by the trusted professionals.

What is a Director Penalty Notice?

If you are a company director, then it is your responsibility for “ensuring that the company’s tax and super obligations are reported and paid on time.”

If your company does not pay the relevant amount or liabilities by the due date, the ATO can recover these amounts from you personally in the capacity of a current or former company director.

Recovery of these penalty amounts can begin once you have been issued an ATO Director Penalty Notice.

ato payment arrangement

A Garnishee Notice

ATO garnishee notices can be issued to a person or business that holds money for you or may hold money for you at a future date. (You will be sent a copy of such a notice.)

The notice requires that person or business to pay your money directly to the ATO to reduce your tax debt.

For individuals, a garnishee notice may be issued to:

  • your employer or contractor
  • banks, financial institutions & building societies where you hold accounts
  • people who owe money to you from the sale of real estate such as purchasers, real estate agents and solicitors

In the case of businesses, a garnishee notice can be issued to:

  • your financial institution
  • trade debtors
  • suppliers of merchant card facilities

Then there are the more drastic cases of a tax debt situation escalating to the matters of Wind-Up action and Bankruptcy.

Wind-Up proceedings can be taken against a company if it has failed to pay its debts and a suitable payment plan has failed to be negotiated with the ATO.

In the case of a Bankruptcy Notice, this is the final stage of the tax debt recovery process. If you’re facing ATO debt bankruptcy action, but believe you can pay your debts, you need to provide the ATO with clear evidence of your ability to pay.

The most important things to know about how to Stop Legal Action are to talk the tax debt experts and to do it as soon as possible. 

Now is the time to get on top of your tax debt. The best of professional help is just a phone call away.

Contact us today and avoid the danger of a tax debt getting out of control.