People often have the idea that the ATO is an inflexible and difficult organisation to deal with. Of course, no one likes paying tax, so the fact that the ATO is there to collect tax immediately predisposes people to dislike it! 

However, the reality is that the ATO is motivated in the best interests of us all. That taxation revenue is essential for the nation, but at the same time, the ATO wants businesses to stay open, keep people employed, and have the opportunity to grow. 

To help it achieve the second objective, the ATO has several tools for negotiation. By comping to Emergency Accounting for your tax debt help, our team will be able to help you make the most of that opportunity. You’ll soon realise that in a lot of cases, tax debt is optional. 

Why you need the right accountant

The role of an accountant in this process is multifaceted. They not only help you understand the complexities of tax laws but their expertise can help you navigate through the negotiation process, ensuring that you are well-prepared to discuss your tax debt situation with the ATO.

When negotiating with the ATO, it’s important to be transparent and honest about your financial situation. That means, firstly, that you need to fully understand your financial situation, and how the ATO will view it. 

This means that before you start interacting with the ATO, you first need to conduct a full and complete audit of your environment. This is the first thing that we do at EPAS – we will help you dig through your entire financial situation, so that you are able to prepare all the necessary documentation and financial statements that you’ll need. 

This level of preparedness has a secondary benefit in allowing you to demonstrate to the ATO that you’re taking your obligations seriously, and that you will be a good-faith negotiator in what you ask for.

What you can expect from negotiation

One of the key outcomes of successful negotiation with the ATO is the ability to enter into a payment plan. This is important as it eases the immediate financial burden on your business, as well as any cash flow concerns that may have arisen, if you were required to pay the debt back up-front. The team at EPAS will help you here, by helping you flag to the ATO what would be a realistic and manageable payment plan for your business. 

Another issue that many face with the ATO, and need tax debt help with, is the accumulation of penalties or interest charged on the tax debt. Here, if you can demonstrate that your failure to pay was due to circumstances beyond your control, the ATO will often be willing to remit some or all of these charges. Thanks to the audit and strategic guidance that we provide, you’ll be in a strong position to make that argument.

Then, finally, if you can demonstrate that full payment of the debt would put your business at risk, the ATO may agree to a compromise. The ATO understands that circumstances with businesses can be fluid, and where the economy was strong at one moment, in the next it weakens and suddenly the business doesn’t have the same financial resources available to it. In partnership with EPAS, you’ll be able to make a compelling argument for why you should be paying cents on the dollar.

Don’t hesitate if you feel you need tax debt help

Successful negotiation with the ATO can result in the preservation of your business reputation. By addressing your tax debt proactively and responsibly, you can avoid the negative publicity associated with legal action or insolvency. Even if you do subsequently wind down the business, this more positive outcome will make it easier to start the next.

It’s important to remember that negotiation with the ATO is not a guarantee of debt forgiveness. The ATO does have the means to take legal action if it feels like you do owe the full scope of the debt. 

To give yourself the best chance to discharge your tax debt in a healthy way, you need the support of accountants who understand the full breadth and dept of complexities in ATO negotiation. Your business is too valuable to risk trying this yourself or working with accountants that are not specialists in emergency accounting. That’s why you should take advantage of EPAS’ 24/7 hotline, and get started immediately.