TAXATION DEBT INSOLVENCY ADVISORY SERVICES

The Australian debt environment requires the business manager to not only invoke traditional cashflow management disciplines but also to have a good working knowledge of taxation debt legislation, state government taxation, workers compensation requirements, national loan security registration laws, employee entitlement laws and insolvency laws and regulations.

For more information and a free initial consultation, call 1300 756 425 or email enquiry@tphinsolvency.com.au

TAXATION AND STATUTORY LIABILITIES

Because the debt environment is heavily legislated it is easy to inadvertently fall foul of its various mechanisms. This can result in far reaching and crippling ramifications.
TPH understands the environment and offers its expertise to assist and guide the business manager through any debt management event.

TPH can assist companies to understand the boundaries of taxation debt recovery programs and how to manage them should the company fall foul of the ATO. Tax recovery applications are well understood by TPH who are very experienced in managing a tax debt crisis.

BUSINESS ACTIVITY STATEMENT (BAS) PAYMENT

The most common taxes left unpaid are the regular BAS payments. If the business believes, after reliable review, that it can’t pay the monthly/quarterly BAS then the first step is to communicate with the ATO.
This is usually done through your registered tax agent as they have the easiest and fastest access to the right people in the tax office. How it proceeds with the tax office will be dependent on the amount of debt and your history and the reason why it can’t be paid. Generally your tax agent should be able to develop an approach with you that can be presented to the tax office.
If there is no tax agent, TPH can assist with working out an approach.

ATO NOTICES

Once any ATO notices are received, the business needs to address the business cashflow in total and determine whether it has a temporary liquidity problem or something more severe.

If it is serious you should seek the advice of TPH as soon as possible. There are a number of ways to ensure the business has the best chance of survival. It also minimises the chance of you as a director becoming personally liable for the tax debts.

ATO GARNISHEE NOTICE

Over recent years the ATO has increased the use of Garnishee notices. If a company has not paid its tax debt on time, the ATO can ask the company’s bank to withdraw all the funds out of the company’s account and pay it to the ATO. The bank does not have the right to challenge the request and the request occurs before the company knows about it or can do anything about it such as clearing the account.

TPH understands how to incorporate the ATO’s practices & procedures into debt management strategies in order to assist company directors in making the right decisions.

Our strong recommendation is to seek TPH’s assistance as soon as there is any taxation payment problem. Receiving advice as early as possible could save you and the business many thousands of dollars along with providing a sound platform to move forward on.

DIRECTOR PENALTY NOTICE

Director Penalty Notices (DPN’s) are only issued by the Australian Taxation office and have been proven to be an effective debt collection tool. The receipt of a DPN is a significant event and should not be ignored. It allows the ATO to impose personal liability on Company Directors without the delay or the expense of legal action.
It is essential that Company Directors act promptly if they receive a Director Penalty Notice and they must choose their course of action carefully. Although paying the amount of the notice may appear to be the simplest and most direct response, it may actually result in a significantly larger personal liability in the future.
TPH is a specialist in providing advice in regards to the personal liability of Directors.
We can undertake a Solvency Review and assessment of the credit facilities provided by the company and provide an appraisal of the extent and likelihood of the director having exposure to personal liability.
We can provide an independent review of any claims brought by a Liquidator against a director of a company in Liquidation and identify any shortcomings of such a claim or defences available to the director.

LODGMENT OF TAX RETURNS

If taxes have been outstanding for more than 3 months and no return has been lodged, the ATO has power to make directors personally liable. This can be particularly devastating as many people are ill prepared for such an outcome. TPH can guide you through the tax maze in order to avoid any unnecessary tax consequences.

WINDING-UP APPLICATION

The tax office regularly issues over 5,000 winding-up notices to companies around Australia each year. They now issue a notice, as a general rule, if total debts are more than $90,000 or there is a long history of missed payments. The ATO also has a statutory obligation to liquidate companies when it can’t collect the tax debt by other methods. The ATO does not generally ‘forgive’ debt and as such by liquidating a company it goes as far as the legal system will allow it to, thus treating all taxpayers equally.

TPH can assist any company that receives a winding-up application by working through the company’s entire financial position and identifying the options available to the directors and then assisting with the implementation. Options such as a ‘pre-pack’ solution or a Voluntary Administration, a Liquidation or simply negotiating repayment plans with the ATO and other creditors are possible. It is strongly recommended that once a winding-up application is received you contact TPH for urgent advice.