Tax Office Aggression

Something has changed in Australia over the last 6 months which has really seen the ATO come out fighting and the aggression is the worst we’ve seen for a long time.

In recent times the ATO has been far less willing to rebate penalties or rebate interest for late lodgments and now they seem less likely to enter into repayment plans for anyone.

Earlier this year we have seen bank accounts garnished by the ATO, and after speaking with a liquidator recently, he also confirmed that this is the most uncompromising he has ever seen the ATO.

The skeptic in me says they’re chasing every cent they can from anywhere they can…..

For some businesses, whether small or large, this may prove to be the worst time possible for the ATO to show such aggression.  Conditions in some sectors are challenging, and with little sympathy from regulators and the ATO, it could spell trouble.  Added to this, a raft of new “economy slowing” taxes are coming (even though their impact is uncertain at this time).

We would suggest that if any business is struggling, they really need to get on the front foot.  Speak with us or the ATO and devise a plan of attack, don’t leave it too late.

If the outcome is some form of repayment plan, we strongly suggest that you base your repayment agreement on achievable amounts.  We have seen the ATO threatening legal action and liquidation for small breaches of a repayment agreement, even for a short time.