In April this year, we published an article regarding the ATO recommencing the issuing of Director Penalty Notices (view article here). During the pandemic, the ATO had offered administrative relief to businesses who were experiencing financial difficulty. However, that relief was always going to come to an end…
As at 30 June 2021, the tax debt stood at $55 billion. Accordingly, it was only a matter of time before the ATO looked at recommencing its debt recovery action.
There has recently been an increase in the use of Garnishee Notices and Director Penalty Notices by the ATO, meaning that the ATO are certainly not holding back and are now pursuing more aggressive debt collection approaches.All businesses with outstanding GST, PAYG and SGC should seek to develop repayment strategies as soon as possible. As the ATO continues with its debt recovery pursuit, businesses will no longer be able to put-off their tax debts.
We encourage all businesses with outstanding tax debts to seek urgent advice regarding appropriate steps forward.
If you require any assistance, please don’t hesitate to contact us at Rankin Business Lawyers.
Senior Associate, Workplace Relations/Employment Law