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Coming Up Short with Cashflow??….

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Kim Sceriha, CA, of WMS Chartered Accountants

Contact Kim: +61 7 5556 3300

Its tough times out there and with volatile conditions, its easy to get behind with your cashflow.

Whilst you may be ok with juggling payment of your trade creditors, are you on top of your tax obligations with the ATO?

The Australian Taxation Office (ATO) has a comprehensive debt recovery process which demonstrates it’s seriousness toward recovering outstanding tax debts.

If you are a director of a company, you can be personally liable for the company’s tax liabilities (ie PAYG Withholding) if the company fails to pay these when due, or if it fails to take other appropriate action as follows:

  1. Enter into an arrangement with the ATO,
  2. Appoint a voluntary administrator to the company, or
  3. Wind up the company

At present, the ATO can only recover outstanding tax from a director after the director has been issued with a Director’s Penalty Notice (DPN). This notice requires the company to take action within 14 days before the collection process is commenced toward the director.

We are aware that the ATO is considering tightening this process resulting in recovery action commencing after 3 months of the tax outstanding, regardless of whether a DPN has been issued.

If you require assistance with managing your tax debts with the ATO, please contact us. We are up to date with the latest recovery processes and can assist with asset protection structuring to ensure your personal assets are safe guarded from unforeseen liabilities.

Kim Sceriha, CA, of WMS Chartered Accountants

Contact Kim: +61 7 5556 3300

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