Australian Taxation Office (ATO) shifting to firmer debt collection activity
The ATO has flagged a return to more aggressive debt collection actions after seeing a trend of profitable businesses that have the capacity to pay their tax debts but are actively choosing not to do so.
.
The ATO should not be considered as an unsecured lender last in line, because when they lose patience, they hit hard.
Taxed debts include not only income tax, but also unremitted GST and unpaid PAYG withholding, as well as super guarantee charges.
In general, if taxpayers do not pay their tax by the due date or engage with the ATO by the due date to work out a payment plan, general interest charge (GIC) will be applied to any unpaid amounts. GIC is automatically calculated on a daily compounding basis on the amount outstanding and added to taxpayers’ accounts periodically.
Hot Issues
- ATO outlines focus areas for SMSF auditor compliance in 2025
- ATO to push non-compliant businesses to monthly GST reporting
- ASIC pledges to continue online scam blitz
- Tax Office puts contractors on notice over misreporting of income
- Tax planning tips for 2024-2025
- What does the proposed changes to HELP loans mean?
- Vacant Residential Land Tax
- The Most Held Currencies in the World | 1850-2024
- Salary sacrifice and your super
- 5 Clauses Tenants Should Look For When Reviewing a Lease
- ASIC continues crackdown on dodgy directors
- Vehicle association calls for stricter definitions with luxury car tax changes
- Government to push ahead with GIC deduction changes
- Exploring compassionate early release of super
- Have you considered spouse contribution splitting?
- Best Selling BOOKS of all Time
- GST fraudsters to face ‘full force of the law’: ATO
- Social media scams dominate losses in 2024
- Managing your business’s tax debts
- Warning on ATO data matching “lifestyle” assets and your business
- ATO issues alert on guarantee arrangements and Division 7A
- E-Commerce Laws You Must Know To Run An Online Business
- Resources and Tools to help our Clients build their future
- Most Powerful Economies in Europe | 1960-2024
- ATO reveals small business hit list to combat tax debt
- What are the FBT implications of Employee Christmas Parties and Gifts?
- Assess a business before you buy it
- Christmas Parties and Taxi Fare/Rideshare – FBT implications.
- Practitioners cautioned on ATO’s top target areas for GST
- ATO to target growing businesses in latest compliance blitz
Article archive
January - March 2024 archive
- Small businesses may ‘collapse under strain of payday super’, IPA warns
- ATO’s hands tied with scrapping on-hold debts, expert says
- What Drives Your Business Growth and Profits?
- Australian Taxation Office (ATO) shifting to firmer debt collection activity
- Why employee v contractor comes down to fine print
- Sharing economy reporting regime for platform operators
- Countries producing the most solar power by gigawatt hours
- Illegal access nets $637 million
- Accessing superannuation benefits.
- Does your business have a company Power of Attorney?
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- GrantConnect
- 2 in 3 SMEs benefit from instant asset write-off, survey reveals
- Updated guidance on R&D claims
- Do you know how to recover debts?
- Wheat Production by Country
- Types of small business benchmarks
- What is a Commercial Lease?
- ATO warns advisers against suspect R&D tax claims
- The year of workplace law upheaval
- How to Resolve Invoice Payment Disputes
- Raft of revenue tweaks in MYEFO to raise millions
- The Countries that Export the Most Wine in the World
What our clients say about us