An official statement by the ATO today indicates debt recovery actions will recommence in New South Wales, Victoria and ACT “after a general pause during lockdowns”.
The ATO’s initial focus will be on taxpayers with higher debts and superannuation guarantee debts, and that all other taxpayer debts (smaller non-super guarantee debts) will be pursued in the new year.
The ATO is using “a tailored approach” to lodgement and payment enforcement and continues to encourage small business and their tax advisers to bring lodgements up to date, and where necessary, enter into payment arrangements.
Tax owed to the ATO as at 30 June this year topped a record $55 billion. If, as suspected, there are record defaults in lodgements, this amount may be significantly more!
Whilst the ATO have acknowledged that small businesses have been hit the hardest during COVID-19 lockdowns, stronger recovery actions will inevitably ensue throughout wider business sectors in 2022.
An ounce of prevention is worth a pound of cure. Encourage your recalcitrant taxpaying clients to seek insolvency advice before the Taxman cometh!
If you need urgent funding to pay a business tax debt, HomeSec is here to help and can have your tax debt paid out within 24 hours.
