ATO intent on chasing outstanding business debts

ATO intent on chasing outstanding business debts

Businesses that do not pay their tax on time should expect “timely, stronger action” from the ATO this year.

Speaking to AccountantsDaily, an ATO spokesperson said while the majority of businesses voluntarily pay their tax on time or soon after, there are a small number that pay late or do not pay at all.

“The ATO takes timely, stronger action to prevent those that don't pay from gaining an unfair financial advantage over those that do. This can include garnishees, director penalties and insolvency proceedings,” the spokesperson said.

“Taking timely, stronger action also limits the broader harm being caused by unviable businesses that trade insolvent, causing financial distress for suppliers, customers and employees,” the spokesperson added.

The spokesperson stressed that the ATO is open to working with businesses to resolve any debt-related issues that arise.

“The ATO works co-operatively with viable, well-run businesses experiencing short-term cash flow issues that prevent them paying on time. Most businesses are able to get back on track through a payment plan,” the spokesperson said.

 

ATO intent on chasing outstanding business debts
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