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How You Can Tell That You’re About To Be Targeted By The ATO

Over and over again we have SME owners contacting us in a blind panic because their tax debt has hit the point that the ATO has come calling. There isn’t much that is more frightening than the ATO when it’s had enough, but the question is: why do you let that happen to yourself when there are always tax debt solutions that can save you sleepless nights and the financial health of both yourself and your business?

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Everyone knows that tax is an annual obligation in Australia, and if you allow yourself to fall out of compliance with lodgements, you’re going to end up with tax debt.

Rather than seek out tax debt solutions upfront, some people try to bury their head in the sand. This never works.

It doesn’t take long for the ATO to chase business owners that it believes are not compliant or have a tax debt. Thanks to the ATO’s investment into technology, it has automated a lot of these processes and it can now automatically detect a business that is missing its obligations.

What’s scary about this is that even if the ATO is in error, until you demonstrate that it is, it can (and will) continue to chase you, and can even potentially make your business’ tax debt your own personal liability. That’s why the ideal time to contact EPAS for tax debt solutions is yesterday, if you have any concerns whatsoever that you’re about to get a notification or are starting to get them from the ATO.

Here are some signs that the ATO has run out of patience

It’s important to remember that the ATO is interested in compliance, and the tax debt itself is almost secondary. Business owners that come to us for tax debt solutions are often surprised to find how easy it can be to negotiate with the ATO when it’s done in good faith. But just as the ATO can act fast, so should you – we have had cases where people have lost their businesses because they came to us when it was too late.

Soon after the due date for your documentation or tax, the ATO will try to get in touch with you over your tax debt. Typically this will start with an SMS, letters or a phone call. At this stage the ATO is perfectly friendly. You may be charged interest on the delayed payment (though as part of your tax debt solutions we can often negotiate this down for you), but if you act quickly and resolve the debt, or negotiate a solution with the ATO, then that’s as far as things will go – a simple courtesy reminder of your obligations.

This is still the best time to contact EPAS for our tax debt solutions, however. Often businesses fall behind because they’re struggling with the tax burden, and often that’s because they’re missing out on opportunities to minimise their tax debt. We can help you find solutions to those challenges and get your business back into a healthy shape.

If you simply ignore the courtesy reminder, however, the matter will progress. The ATO also lists out the following reasons that it will start to take stronger action:

  • You are unwilling to work with them
  • You repeatedly default on agreed payment plans
  • You don't have the capacity to pay and don't take steps to resolve their situation
  • You have been subject to an audit where we detect deliberate avoidance and payment avoidance continues
  • You appear to be engaging in phoenix activities (using liquidation to avoid financial obligations without risking assets and with the intention of resuming business operations through a new entity).

It’s at this point that you’re in trouble, and can start to get more threatening documents, like a garnishee notice or a director penalty notice. Essentially, at this point the ATO is going to make your business’ debt your own personal debt, and without the support of tax debt solutions from EPAS, the ATO will move on to their third state to recover tax debt, and that is legal action and steps to wind up your company.

So, when should I contact EPAS?


Sooner, not later. As Emergency Accountants, we will move quickly to prevent the ATO from escalating its tax debt collection, and we will subsequently work with you to develop a tax debt solution that will save you money, get your business back into financial health, and get the ATO off your back.

Get Started

Drop us a line and we’ll get back to you!

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