It’s important to acknowledge that you’re not alone in facing tax debt challenges. According to the Australian National Audit Office, the total tax debt owed to the ATO amounted to $5.5 billion during the 2010-2011 period, while the ATO collected $273 billion in net revenue. Source: ANAO

So, when the tax man is pursuing you for money and your financial resources are limited, it’s crucial to explore your options. Let’s examine them:

  1. Resolve your original tax returns to ensure accuracy. Often, business owners and accountants may overlook valid tax deductions. Double-checking your returns could uncover missed opportunities for deductions.
  2. If your tax files are accurate, consider negotiating a payment arrangement with the ATO. The ATO understands the challenges of cash flow for business owners and may be willing to accommodate your situation. Contact them as soon as possible to discuss payment options.
  3. If your financial situation is dire and paying taxes jeopardizes your basic needs, you can apply for a tax release. Provide the ATO with evidence or supporting documents of your circumstances and complete a release form.
  4. If none of the above options align with your situation, seeking assistance from a business management and insolvency expert like Resolve Business Solutions can provide additional strategies. Our team can help you communicate with the ATO and navigate the complexities of your tax debt situation.

Whether you should deal directly with the ATO or seek professional assistance depends on the amount of tax debt you owe. For smaller amounts, it may not be necessary to engage a professional. However, for more significant debts, reaching out to us or fill in the enquiry form for an informal discussion on how we can assist you with tax debt management is advisable.