Has the ATO been pressuring you for payment?
Could you apply for a refund of interest and penalties the ATO have charged in the past?
Dealing with the Tax Office and other agencies relating to your tax matters can be stressful and time consuming. Often contacting the ATO is put in the too hard basket, and left for another day. These dealings can often be exhausting and leave you feeling deflated with disastrous outcomes. At Dendra, Mary DeFreitas our Compliance Officer, has worked with clients over the past 15 years to assist them when negotiating with the ATO on a number of levels.
At times, the negotiation situations are made worse with inexperience of either the taxpayer or the tax office representative. Understanding your obligations when negotiating agreements with the ATO is important and failure to adhere to an arrangement can be critical in future dealings with the ATO. If intervention is early and handled with expertise, matters can be identified, managed and resolved, and serious enforcement action avoided.
We have worked with individuals and businesses who have failed to lodge years of returns and activity statements, while also successfully minimising fines and interests and securing manageable payment arrangements to clear ATO debt, including any employee's superannuation. We have had numerous successes in securing remissions of interest in part and most times in full.
An assessment of your financial situation may determine that a longer term will be required to repay any debt. We have even secured payment arrangements of up to four years and in rare cases, even longer. Financial assessments may however, determine that other options such as Release from the debt or, other arrangements, alternative to bankruptcy or insolvency, would be more appropriate.
We have a solid knowledge of the workings of the ATO, the supporting legislation and guiding principles that govern ATO decisions. On many occasions, we have attended to taxpayer reviews and objection rights.
Below are some examples of recent examples where we have assisted our clients. If you would like us to review all the interest and penalties that you may have paid to the ATO in the past or would like us to assist with setting up a long term payment arrangement, please contact our office.
Case 1 - Steel Fabricator
The ATO had commenced legal action against a Melbourne East steel fabricator and was in the process of commencing the process of winding up the company. The ATO was also transferring part of the company debt to the director via a Director Penalty notice. The total debt owing to the ATO was $450,000.
We arranged for 7 years of interest and penalties to be credited to the company's account, totalling $157,000. After assisting the client to make a lump sum payment, the remaining amount owing to the ATO of $200,000 was arranged to be paid by monthly instalments over 4 years.
Case 2 - Plumber
A plumbing company had Business Activity Statement debt of $120,000 that included $14,500 of interest and $4,000 of late lodgement penalties. In addition, the plumber owed $70,000 in overdue superannuation to employees.
We were successful in obtaining a full refund of the $14,500 of interest and $4,000 in late lodgement penalties. An arrangement was then put in place with the ATO to pay the remaining amount over 4 and a half years in monthly instalments.
Case 3 - Glazier & Shopfitter
The client and his related entities had not lodged tax returns for 3 years and was also 18 months overdue on lodging Business Activity Statements. The amount owing to the ATO after Dendra lodged all outstanding documents totalled $196,000.
After extensive negotiations with the ATO we were able to arrange for $22,000 of late lodgement penalties and $41,000 of interest charges to be credited by the ATO. We were able to then arrange for the remaining $133,000 to be paid via a $13,000 upfront payment and $120,000 paid by monthly instalments over 3 years.