Managing tax debt is a skill.
Here is a list of the most important things I can tell you about negotiating a tax debt:
- The client needs to get on with business, so we manage all the communication with the tax office.
- Even when there is a lot of pressure from the tax office, they do respond to a decent plan, even after there has been an agreement that has fallen by the wayside.
- There is a difference between pressure from the tax office and pressure from their legal department. Knowing what each of them need to hear and what action needs to be taken is important in negotiating.
- A tax debt can only be paid if our clients can manage it. There are other plans available when the debt has got out of hand.
- The interest that the ATO charge is a killer – 9% compounded. This is an interest rate that is much higher than credit cards. Late lodgement fees are a killer as well.
- Deals that dissipate the interest and late lodgement fees can be negotiated, but only after all accounts are up to date and there is a plan in place.
Great things can be acheved in negotiating with the Australian Tax Office, but there are so many issues and skills needed. The patience of a saint is one of them. Instead of being infuriated, trying to make a deal. Let us help you arrive at a plan that gives you the best deal allowing for your resources and cashflow.
Your Business Angels will jump in and help you with your problem. Take the first step and give us a call.