Whether you are a Director of a company, a sole trader, received a Director’s Penalty Notice or Garnishee notice, or you personally owe money to the ATO, you should never ignore your tax debt. It most certainly will not disappear on its own, and the longer you leave it, the more fines, penalties and interest will be added to your debt. If unresolved, litigation will most likely follow.
The ATO have policies in place to work with taxpayers to resolve their tax debt, and if you do the right thing, you can expect a fair hearing.
Whether you are a Director of a company, a sole trader, received a Director’s Penalty Notice or Garnishee notice, or you personally owe money to the ATO, you should never ignore your tax debt. It most certainly will not disappear on its own, and the longer you leave it, the more fines, penalties and interest will be added to your debt. If unresolved, litigation will most likely follow.
The ATO have policies in place to work with taxpayers to resolve their tax debt, and if you do the right thing, you can expect a fair hearing.
Can you become personally liable for your company’s tax debt?
Yes. If you keep ignoring your company debts, namely unpaid PAYG and superannuation, you may receive a Director Penalty Notice (DPN) – meaning, as the Director, you may become personally liable for these company debts. You will have 21 days to settle this DPN notice before further legal action is taken by the ATO. Sometimes you can be liable for a company’s PAYG and super liability because you have not lodged your relevant returns on time.
Received a Garnishee Notice?
If you are in debt to the ATO, you may be issued with a garnishee notice on your bank accounts with a demand to pay the ATO within a specified amount of time. Failure to do so can result in your bank accounts being frozen and a suspension on your trading accounts.
How will the ATO react to your debt?
If the ATO is aware that you are not ignoring your tax debt, and that you have sought professional help, you can expect a fair hearing. The ATO is aware that demand letters or legal action does not always result in payment, and often this has the opposite effect and results in people withdrawing even further. Therefore, depending on your financial situation, they are often willing to negotiate a reduction or compromise.
If you have outstanding debts with the ATO, have received a Director’s Penalty Notice or a Garnishee notice, you should always seek professional help. MyTaxDebt has a long record of dealings with the ATO, and in most cases we can negotiate a reduction or compromise on your tax debt.
Can you become personally liable for your company’s tax debt?
Yes. If you keep ignoring your company debts, namely unpaid PAYG and superannuation, you may receive a Director Penalty Notice (DPN) – meaning, as the Director, you may become personally liable for these company debts. You will have 21 days to settle this DPN notice before further legal action is taken by the ATO. Sometimes you can be liable for a company’s PAYG and super liability because you have not lodged your relevant returns on time.
Received a Garnishee Notice?
If you are in debt to the ATO, you may be issued with a garnishee notice on your bank accounts with a demand to pay the ATO within a specified amount of time. Failure to do so can result in your bank accounts being frozen and a suspension on your trading accounts.
How will the ATO react to your debt?
If the ATO is aware that you are not ignoring your tax debt, and that you have sought professional help, you can expect a fair hearing. The ATO is aware that demand letters or legal action does not always result in payment, and often this has the opposite effect and results in people withdrawing even further. Therefore, depending on your financial situation, they are often willing to negotiate a reduction or compromise.
If you have outstanding debts with the ATO, have received a Director’s Penalty Notice or a Garnishee notice, you should always seek professional help. MyTaxDebt has a long record of dealings with the ATO, and in most cases we can negotiate a reduction or compromise on your tax debt.
Who can help?
Your best interests are served when you source and choose MyTaxDebt as your representative for negotiations and communications with the ATO. For more information on how we can help you with your tax debt and obligations to the ATO, please fill out the short contact form below or call us on 1300 333 433.
Who can help?
Your best interests are served when you source and choose MyTaxDebt as your representative for negotiations and communications with the ATO. For more information on how we can help you with your tax debt and obligations to the ATO, please fill out the short contact form below or call us on 1300 333 433.
