Don’t worry, you’re not alone.
Right now, the ATO is chasing after at least $45 billion in unpaid taxes, and these days they’re not hesitant to report your debt to credit agencies.
Don’t panic!
You have a few options to consider, and doing nothing is definitely not the best one.
If you simply register with us, we might be able to buy you an additional 6 months to lodge and pay your taxes.
If that’s not possible and you can’t get the funds together, the best course of action is to lodge your tax return on time ask for more time to pay. By setting up a payment plan, you agree to pay a certain amount of money each week, fortnight, or month until your balance is cleared.
Why should you enter a payment plan?
Well, the ATO will work with you and take into account factors like your income, expenses, and other financial commitments. This makes it easier for you to meet your obligations without facing excessive financial strain.
By entering a payment plan, you can avoid or reduce the accumulation of penalties and interest on your unpaid tax debts. It also shows the ATO that you’re willing to meet your tax obligations and stay compliant with tax laws. This can help you maintain a good relationship with them and prevent further legal actions or collection efforts.
Paying off your tax debts over time through a payment plan allows you to preserve your cash flow. It can also relieve the stress and uncertainty that comes with dealing with a tax debt.
Lastly, entering a payment plan can help you avoid legal actions such as garnishments or asset seizures. Instead of facing these consequences, a payment plan gives you time to resolve your debt.
Keep in mind that the interest rates on tax debts are around 11% per annum and are increasing as the ATO cracks down on overdue debts.
Other options?
For businesses, there may be other options available, such as upgrading your structure to significantly reduce your tax burden.
The first step is to gather all the necessary information. We can assist you with that and even work with the ATO to create a plan tailored to your situation.
To book an appointment, please click here to talk to one of our expert team.
and if you want more information about tax deadlines, please check out the 3-minute video below my signature.
Stephen is the CEO of Accountants Direct and is a Professional Director, ASIC Agent, Startup Advisor & Investor & Capital Raising Specialist.
Contact Stephen or his team if you have any questions about this post or any business matter in general.
