Neglected Your Tax?

A Daily Telegraph investigation has revealed a concerning trend, over 8.3 million individuals and small businesses in Australia failed to lodge their tax returns for the 2009 and 2010 financial years.

While some taxpayers are simply behind on paperwork, many are avoiding lodgement altogether due to worsening financial stress.

Why Are So Many Tax Returns Unlodged?

Small business owners are among the hardest hit. Despite signs of economic recovery, the financial aftershock is still being felt:

• 700,000 taxpayers entered ATO payment arrangements in 2010, totalling $9.4 billion in outstanding debts.

• That represents a 32% increase over four years.

• 260,000 small businesses are expected to default on these arrangements.

ATO’s Response: Garnishee Orders and Liquidations

To recover unpaid tax debts, the ATO is significantly increasing its use of garnishee orders. These orders:

• Allow the ATO to withdraw funds directly from a business’s bank account

• Can make a business no longer viable, draining working capital needed to operate

• Permit the ATO to claim debts owed to the business by its own customers

In parallel, the ATO is targeting those who default on payment arrangements by issuing Director Penalty Notices. These notices can lead to forced administration or liquidation if action isn’t taken.

Now Is the Time to Get Ahead of Your Tax Obligations

If you’re behind on your tax returns or concerned about mounting ATO debts, now is the time to act—before the ATO acts first.

At Dolman Bateman, we help small businesses and individuals:

• Lodge overdue tax returns

• Negotiate payment arrangements

• Avoid garnishee orders and forced liquidation

• Get back on top of your financial obligations

Call us today on (02) 9411 5422 or contact us online to schedule a confidential consultation.

Meeting with Gavin Bateman

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Disclaimer:

The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.