Do you owe the ATO a SMALL FORTUNE in taxes in your business, which you can’t pay?
There is nothing worse as a business owner than falling behind in your taxes …
When it comes time to lodge your BAS statements and pay your GST and PAYG instalments in your business, you just don’t have the money.
You know you’re in serious tax trouble …
With all the overheads and everything else going on, it gets put to the side.
Before you know it, the ATO is chasing you. You see the interest, fines and penalties continue to increase and before you know it, your bill hits $20,000 … $50,000 … $100,000 … $200,000 … it just keeps rising.
You keep getting letters and phone calls from the ATO … or some debt collector, wanting to know when the tax is being paid … threatening to pursue you and take legal action.
Your stress just keeps on rising, and you find it hard to focus on your business.
Before you know it, you can’t see the wood from the trees anymore, and just don’t see any way out.
This is the reality for many business owners in Australia.
They are in serious tax trouble
If this is you, you’re in serious trouble and need to act now.
Once the ATO start the legal wheels rolling, it’s almost too late. The juggernaut gets momentum … before you know it, money is taken from your bank account (called a “garnishee order”), and you get more legal notices.
If it is on the way to court, it gets even harder.
What’s even worse is the ATO seem unwilling to give you any leeway.
Why is this? Let me give some background to this.
It’s due to the “Zero Tolerance” War by the ATO …
In 2012, the ATO declared war on “naughty small businesses” who weren’t paying attention to their taxes.
The Commissioner said business owners were using money put aside for taxes to pay other bills. “This is not what we want to encourage”, he said … so he declared a zero tolerance war on all small business tax defaulters. He said leniency would no longer be shown unless absolutely warranted.
The result is, more businesses are going broke than ever before … and are in serious tax trouble.
And rest assured … the ATO will chase you hard.
But all is not lost. Because, under the law …
If you get into serious tax trouble, and cannot pay your BAS (GST, company tax, PAYG), you may be able to restructure your business to get rid of the debt. All 100% legal.
You see, there are 4 options under the tax legislation if you can’t pay your tax …
This is the GOOD news.
You can enter into a payment plan with the ATO or restructure the business to start again. Like a “get out of jail free” card.
The BAD news is, in 2012, laws were changed to make it tougher for business owners to restructure their businesses and avoid tax owing.
That is, you can’t just shut down a company and easily get rid of your PAYG or superannuation responsibilities.
You have to meet certain requirements, and follow a STRICT LEGAL process.
The most important thing is …
You may be able to enter into a payment plan, or even restructure your business, to minimise or completely get rid of tax debt.
All 100% legal.
Obviously you have to be careful in doing this. There are strict laws around “Phoenix companies”, ie. where you shut down companies not at proper market value and start again next day. ASIC take a dim view of this.
This is illegal and not on.
It has to be a legitimate and proper restructure to trade out of an insolvent situation, or where you’re in financial trouble.
But that said, ASIC and the ATO also recognise it is illegal to trade insolvent as well. That is, to keep running a business and incurring debt while knowing you are unable to pay your tax or other debts as and when they fall due.
That can also get you into trouble.
So if you are in serious tax trouble, you need to ACT NOW.
Because otherwise you may not only go broke, but may end up with legal trouble and being prosecuted for insolvent trading.
Not a pleasant experience.
So … what can I do to fix this? How can I get help for my serious tax trouble and get out of it?
You want to work with experts who specialise in serious tax trouble, and can advise you on what can be done.
Your normal accountant will just tell you to keep paying it.
But that is not always the best way … because you may be guilty of insolvent trading, and setting up a noose for your neck.
You want to book in immediately with a specialist who deals with people in serious tax trouble.
What we offer is a complimentary strategy session where one of our specialists will look at it, and see what can be done about it.
If we can’t do anything, we tell you straight.
If we can do something, we show you the options and give you a quote.
How Do I Take Action Now?
Call us on 1300 669 336 or click here to organise a no-obligation strategy session.
One of our team will be in contact within 24-48 hours.
About the Author
Written by Warren Black head of the Wealth Safe tax planning division.
Warren has 27 years experience in tax planning and asset protection, including 10 years at the Australian Tax Office.
Warren is a specialist in dealing with people who have serious tax trouble, and has a brilliant team of specialists to assist.
Warren knows the tricks of the trade so you only pay the tax you legally have to and you take advantage of tricks available to build your wealth faster.
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