TAXATION DEBT ADVISORY SERVICES

Every corporation in Australia needs to manage taxation debt whether it is a federal tax such as PAYG, income tax, GST, superannuation levy or a state debt such as payroll tax, stamp duty or workers compensation, TPH has great success in achieving brilliant results for tax repayment plans or strategies in managing the debts. TPH also advises on how to deal with overdue taxes so as to avoid personal liability or significant penalties.

TAXATION AND STATUTORY LIABILITIES

Because the debt environment is heavily legislated it is easy to accidentally fall foul of its various mechanisms. This can result in far reaching and crippling ramifications.
TPH understands the environment and offers its expertise to assist and guide companies through any debt management event.

TPH can assist companies to understand the boundaries of taxation debt recovery practices and how to manage them should the company fall foul of the ATO. Tax recovery applications are well understood by TPH who are very experienced in managing a tax debt crisis and getting great results.

BUSINESS ACTIVITY STATEMENT (BAS) PAYMENT

The most common taxes left unpaid are the regular Business Activity Statement taxes. If the business believes, after reliable review, that it cannot pay the monthly/quarterly BAS then the first step is to approach the tax office and negotiate a repayment plan or removal of penalties interest. TPH knows what the tax offices will require in terms of information and a deal and we have assisted many companies and directors achieve great outcomes.
If there is no tax agent, TPH can assist with working out an approach.

ATO NOTICES

The Australian Taxation Office have many tools to assist them collect tax in Australia. Two of the more common notices used are the garnishee notice and the director penalty notice.

ATO GARNISHEE NOTICE

Over recent years the ATO has increased the use of Garnishee notices. If a company has not paid its tax debt on time, the ATO can ask the company’s bank to withdraw the funds out of the company’s account and pay it to the ATO. The bank does not have the right to challenge the request and the request occurs before the company knows about it or can do anything about it.

TPH understands how to incorporate the ATO’s practices & procedures into debt management strategies in order to assist company directors in making the right decisions.

Our strong recommendation is to seek TPH’s assistance as soon as a garnishee order is received. Receiving advice as early as possible could save you and the business many thousands of dollars along with providing a sound platform to move forward on.

DIRECTOR PENALTY NOTICE

Director Penalty Notices (DPN’s) are only issued by the Australian Taxation office and have been proven to be an effective debt collection tool. The receipt of a DPN is a significant event and should not be ignored. It allows the ATO to impose personal liability on Company Directors without the delay or the expense of legal action.
It is essential that Company Directors act promptly if they receive a Director Penalty Notice and they must choose their course of action carefully. Although paying the amount of the notice may appear to be the simplest and most direct response, it may actually result in a significantly larger personal liability in the future.
TPH is a specialist in providing advice in regards to how to manage a DPN. The receipt of a DPN should immediately call for the implementation of a realistic plan to deal with it. A DPN should only be dealt with after seeking specialist advice such as TPH can provide

LODGMENT OF BUSINESS ACTIVITY STATEMENT (BAS)

If taxes have been outstanding for more than 3 months and no return has been lodged, the ATO has power to make directors personally liable. This can be particularly devastating as many people are ill prepared for such an outcome. TPH can guide you through the tax maze in order to avoid any unnecessary tax consequences.

WINDING-UP APPLICATION

The tax office regularly issues over 5,000 winding-up notices to companies around Australia each year. They now issue a notice, as a general rule, if total debts are more than $90,000 or there is a long history of missed payments. The ATO also has a statutory obligation to liquidate companies when it can’t collect the tax debt by other methods. The ATO does not generally ‘forgive’ debt and as such by liquidating a company it goes as far as the legal system will allow it to, thus treating all taxpayers equally.

TPH can assist any company that receives a winding-up application by working through the company’s financial position and identifying the options available to the directors and then assisting with the implementation. Options such as a ‘pre-pack’ solution or negotiating repayment plans with the ATO and other creditors are nearly always possible. It is strongly recommended that once a winding-up application is received you contact TPH for urgent advice.