It Is True - Tax Debt Is Optional!

What do you mean when you say “tax debt is optional”?

At EPAS we’ve been able to reduce the tax debt for our clients to as little as cents on the dollar. We can do this because the ATO would always rather see a business stay open then need to close up. One situation in which we can support a business to negotiate their tax debt to cents on the dollar is if they are experiencing extreme financial hardship.

In this case, the ATO may be willing to accept a reduced amount of tax debt to help the business get back on its feet.



However, the ATO will still need to assess the business's financial situation and determine that it is genuinely unable to pay the full amount of tax owed. To property represent your business to the ATO, you need the support of skilled and experienced negotiators.

Another situation in which a business may be able to negotiate their tax debt to cents on the dollar is if they are facing insolvency or bankruptcy. In this case, the ATO may be willing to accept a reduced amount of tax debt to avoid losing out on the entire amount if the business goes under.

This is typically only done as a last resort, and the ATO will generally seek to recover as much of the debt as possible, but it’s important to understand that if it looks like your business is in a hopeless position, there are ways out.



In most cases, the ATO will expect businesses to pay their full tax debt, and negotiations will focus on how to make this possible given the business's financial situation. However, you should always talk to the expert team at EPAS, because as we make it clear, tax debt is optional and for the health of your business you should investigate whether you can reduce your debt before you pay.