It is generally accepted the economy is somewhat flat and liquidity is tight, hence it may be that ATO payments such as income tax liabilities and PAYG instalments are proving more difficult to meet than usual.
The ATO has been receptive when approached on behalf of clients in these circumstances and appropriate payment plans have been successfully negotiated without the need for financial statements and other documentation to substantiate the financial incapacity preventing payment in full!
It is important to note that when payment plans are put in place the ATO imposed conditions are: -
- The payment schedule is strictly maintained according to the expected payment dates
- All other payments are made by their due date
- All other tax lodgements (e.g. returns, IAS/BAS) are lodged by their due date
In the event, for example, of late payment, the ATO will default the plan and may seek recovery of the full debt; if the taxpayer is not then able to pay in full, the ATO will seek details of income and assets.
It is essential that we keep the ATO informed of any difficulty which arises to avert any likely default.
If we can be of assistance with ATO payments, please contact us on 08 9204 3733.