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.