If you owe a tax debt to the Australian Taxation Office (ATO), and have been slow or tardy in paying, then consider this your warning. The ATO says it is in “full debt collection mode” this year and will be cracking down on outstanding debts and is attempting to claw back almost $50 billion.
The crackdown is expected to claim a number of businesses. Jarvis Archer, head of business restructuring at revive Financial told news.com.au: “The ATO’s message is clear, make the decision to deal with your ATO debt, otherwise we’ll force you to make it.”
“We’ve seen [the ATO’s] progressively serious campaigns of warning letters, director penalty notices, credit reporting, wind ups and now garnishee notices cleaning out bank accounts, something I haven’t seen since 2018.”
So if you, or your business, is on the hook to the ATO, you may want to get it sorted out ASAP.
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