The ATO are revising their approach to collecting unpaid taxes and superannuation contributions to create a fairer system for compliant businesses. They will now concentrate on entities that refuse to engage with them and disregard SMS and letter reminders.
The ATO are implementing different measures than those previously employed. This strategic and focused approach takes into account compliance history.
For both large and small businesses that fail to engage with the ATO or set up a payment plan for unpaid GST, pay-as-you-go (PAYG) withholding, or employee superannuation, the ATO will promptly take more robust actions such as issuing Director Penalty Notices (DPNs) and initiating garnishments.
Directors managing multiple enterprises who allow unpaid GST, PAYG withholding, and employee superannuation to accumulate without engagement can expect us to assess their debts comprehensively. These directors may receive DPNs reflecting the total outstanding amounts across all related entities. Should they fail to respond, we may recover these amounts directly from them, thereby jeopardizing their assets.
As the ATO modifies their approach to collecting unpaid taxes and superannuation contributions, they aim to create a fairer environment for those businesses that fulfill their tax obligations.
This new strategy may affect certain business clients who have not responded to prior engagement efforts by the ATO.
To prevent more stringent actions, businesses should take immediate steps to settle their debts in full or establish a payment plan.
For taxpayers unable to pay in full and on time, you can look at various available options, including payment plans. You may also set up a payment plan online if your debt is less than $200,000.
For those are experiencing genuine financial hardship, additional options are available, including deferring payment due dates and interest waivers.
The key message is: if you are able to pay, you should do so; if you require additional time, don’t ignore the issue—rather, t act promptly to determine if a payment plan can be established online or reach out for assistance.
For further information regarding the consequences of non-payment please visit
https://www.ato.gov.au/individuals-and-families/paying-the-ato/if-you-don-t-pay
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.