Jump to content

Debt with ato


  • Please log in to reply
36 replies to this topic

#1 Cherish

Posted 11 April 2012 - 08:51 PM

Can anyone help me?

I have a debt with the ato. My understanding is you need to at it off within 2 years.
But what happens if you can't?
Are they at all lenient, if you are meeting all your current obligations?
sh*t sad.gif

#2 caesie'n'linc

Posted 11 April 2012 - 08:57 PM

Call them and talk to them, work out a payment plan original.gif  If you can't pay it in the 2yrs then you can't pay it, if they want their money then they will work out a plan that you can afford.

Or you could just ignore it like DH has...they'll catch up with him eventually but it's been almost 2yrs now and he hasn't heard a word from them since they sent the first letter/bill.  We can't pay them anything at the moment anyway, we can barely pay our rent sad.gif

#3 ~~mumsie~~

Posted 11 April 2012 - 09:06 PM

They are lenient if you call them as soon as you receive notification of the debt.

If not, they are quite demanding.

I had to fight tooth and nail over 30 minutes to get a fortnightly payment plan for an old debt of mine that I didn't receive any prior notification of. I called the day that I received the letter, and the woman I spoke to was quite rude and initially demanded full payment within 7 days, which was impossible. I ended up being able to negotiate fortnightly payments over 12 months.



#4 her mum

Posted 11 April 2012 - 09:10 PM

I had a debt with the ato that took about 4 years to pay off. I made an agreement with them for an amount I could afford, and then that plus any 'refund' that I would normally get went to them. It was fine and not a problem as I was paying something...

#5 Cherish

Posted 11 April 2012 - 09:19 PM

I did call them.
The guy I spoke to was not at all comassionate or helpful
sad.gif
He wanted half upfront (cant happen) then
Basically scoffed at what I could afford.
Then he mentiomned bankruptcy,recoveries and closing our business down sad.gif
I was polite, honest and just said quite simply that I wanted to sort it out now, that even it went to recoveries it didnt change the amount i can afford.
He says 'get a personal loan' the banks wont lend for a tax debt and we are unable to service another loan let alone obtain one!
If thy shut it down I wont be able to afford to pay anything!
I asked if there was a specialist team I could be referred to but he said no.
I got an integrated client account in the mail stating
i owe $X. It was not a demand letter or anything like that.
So stressed sad.gif

#6 Cath-In-SA

Posted 11 April 2012 - 09:28 PM

Ring again and get someone else.

Don't stress. Seriously, even you default they will just get you to make another arrangement.  We lost count of the number of arrangements that DH made and defaulted on.  It's also not recorded anywhere but the ATO as a default, it doesn't go on your credit rating or anything.  DH's debt took years but it is now gone.

I want to get his last statement with the $0 balance framed but he won't let me. rolleyes.gif

They can also hold your interest or write some of it off if the person is nice.  They are really starting to crack down on the business debts over the last few years.  Just keep in touch with them, if you get someone who you don't think will work with you, tell them you will look at your finances and call them back tomorrow.

Good luck.

#7 Rach42

Posted 11 April 2012 - 09:32 PM

There is a taxation ombudsman that you might be able to contact for advice (just google ato ombudsman).  

On the ato website it says about repaying a tax debt:
<a name="Content">When  you speak to us about payment of your outstanding tax debt or remission  of general interest charge (GIC), we are committed to:

      
  • understanding your situation and individual circumstances
  • being fair and equitable in the application of the law, processes and policy
  • considering your case on its merits and assisting you to move on
  • assisting you where possible if you are attempting to engage with us and do the right thing.
Good luck with it

#8 MummaDiva

Posted 11 April 2012 - 09:34 PM

Ring them, tell how much you are going to pay them over what period and tell them to take it or leave it.
If they are insistent politely mention that you are going to seek legal advice.
They will accept any plan that is reasonable.

Tax collection agents seem to have a "quota" to fill, and can be really unhelpful unless you are right to the point.

#9 WibbleWobble

Posted 11 April 2012 - 10:26 PM

Is the debt actually with the ATO or is it with a collection agency?

Ring them back and see if you get a different outcome, if not ask to speak to a team leader and for a review of their decision. Also make sure you are taking to someone in the debt area, not just the general personal or business tax areas.

Good luck.

#10 protart roflcoptor

Posted 11 April 2012 - 10:32 PM

QUOTE (Cath-In-SA @ 11/04/2012, 09:28 PM) <{POST_SNAPBACK}>
Ring again and get someone else.

Don't stress. Seriously, even you default they will just get you to make another arrangement.  We lost count of the number of arrangements that DH made and defaulted on.  It's also not recorded anywhere but the ATO as a default, it doesn't go on your credit rating or anything.  DH's debt took years but it is now gone.

I want to get his last statement with the $0 balance framed but he won't let me. rolleyes.gif

They can also hold your interest or write some of it off if the person is nice.  They are really starting to crack down on the business debts over the last few years.  Just keep in touch with them, if you get someone who you don't think will work with you, tell them you will look at your finances and call them back tomorrow.

Good luck.



Thats not really true in the current climate. The ATO is coming down hard on debt, especially small business debt, and will not take kindly to defaults, or saying that you can't' pay. They will escalate to the legal section and you will receive a winding up notice, after they have tried to garnishee from bank accounts.

Is there anyone you can approach to inject some capital into the business, as a short to medium term loan? If a significant payment is made they will be much more amenable to a payment plan for the remainder.



#11 saxa

Posted 11 April 2012 - 10:45 PM

Is this a business debt?

I have worked with a few companies who have had payment plans with the ATO so they do definatly do it, but they usually ask for a fair chunk of the debt upfront.

Assuming it is BAS related you need to be very careful once you get a payment plan for this outstanding debt you are on time every time for repayments, also you must have any future BAS submitted on time and paid on time.

#12 Cherish

Posted 11 April 2012 - 10:52 PM

Yes business debt.
There is no where to get a large chunk of cash from sad.gif

#13 fezzy

Posted 11 April 2012 - 10:55 PM

Just call them and arrange what you can afford, however small it is. We've got a large debt with them and they've been understanding with accepting what we can afford. If you get someone who is rude to you, just stand your ground.

#14 protart roflcoptor

Posted 11 April 2012 - 11:02 PM

QUOTE (fezzy @ 11/04/2012, 10:55 PM) <{POST_SNAPBACK}>
Just call them and arrange what you can afford, however small it is. We've got a large debt with them and they've been understanding with accepting what we can afford. If you get someone who is rude to you, just stand your ground.


It really isn't that easy. Is yours a business or personal debt? And how much do you think is large?  Things have changed in the last 2 yrs.




#15 saxa

Posted 12 April 2012 - 10:26 AM

You can try calling them again today, but be prepared for the same answer.

I don't get the attitude of some of the PP.

Fact is you owe them money yes they can try and work out a plan but they "don't" have to.

Also will you be in a position to pay your Q3 BAS that is due on the 30th of this month?

Do you have an accountant who can call them on your behalf, this might help?

#16 Cherish

Posted 12 April 2012 - 12:01 PM

Yes I will be able to pay my BAS.
Yes I have an accountant who I could contact.

#17 Bluenomi

Posted 12 April 2012 - 12:43 PM

QUOTE (Cherish @ 12/04/2012, 12:01 PM) <{POST_SNAPBACK}>
Yes I will be able to pay my BAS.
Yes I have an accountant who I could contact.


I'd contact you accountant and while getting him to sort this out I'd smack him around the head for letting you stuff your tax up so badly.

#18 protart roflcoptor

Posted 12 April 2012 - 12:46 PM

QUOTE (Bluenomi @ 12/04/2012, 12:43 PM) <{POST_SNAPBACK}>
I'd contact you accountant and while getting him to sort this out I'd smack him around the head for letting you stuff your tax up so badly.


Not their job to go chasing the client if their brief is to leave the BAS lodgement and payment up to the client.

Edited by ossim roflcopter, 12 April 2012 - 12:46 PM.


#19 Bluenomi

Posted 12 April 2012 - 12:48 PM

QUOTE (ossim roflcopter @ 12/04/2012, 12:46 PM) <{POST_SNAPBACK}>
Not their job to go chasing the client if their brief is to leave the BAS lodgement and payment up to the client.


Yes but good accountant will notice it hasn't been paid and remind them. It saves them both a lot of hassle.

#20 PaulineN

Posted 12 April 2012 - 12:52 PM

QUOTE
Is this a business debt?

I have worked with a few companies who have had payment plans with the ATO so they do definatly do it, but they usually ask for a fair chunk of the debt upfront.

Assuming it is BAS related you need to be very careful once you get a payment plan for this outstanding debt you are on time every time for repayments, also you must have any future BAS submitted on time and paid on time.

I was in a similar position. Got a very unhelpful lady on the phone who told me I had to pay $5,000 that day the could pay off the balance!!!!!

In the end she transferred me to a different person/department who was much more helpful. I didn't pay anyting upfront but agreed to pay $2,000 per month for 6 months, plus continue to pay BAS every quarter. At my last quarterly bas I had to phone to rearrange payment terms so I skipped one month of payments (which month I paid regular bas) so I'll be finished the payment plan one month later.

It really depends who you get on the other end of the line.

#21 crayons

Posted 12 April 2012 - 01:21 PM

As per previous PP's sometimes there is not a lot that can be done they really have been cracking down and asking for 50% upfront in most instances. You mentioned that it was on your integrated client account is any of it for PAYG Instalments? If your business is not doing so well this year (less profit than last year) then you may be able to be vary them down? check with who ever does your books.

#22 PrincessPeach

Posted 12 April 2012 - 01:42 PM

QUOTE (Cherish @ 11/04/2012, 09:19 PM) <{POST_SNAPBACK}>
I did call them.
The guy I spoke to was not at all comassionate or helpful
sad.gif
He wanted half upfront (cant happen) then
Basically scoffed at what I could afford.
Then he mentiomned bankruptcy,recoveries and closing our business down sad.gif
I was polite, honest and just said quite simply that I wanted to sort it out now, that even it went to recoveries it didnt change the amount i can afford.
He says 'get a personal loan' the banks wont lend for a tax debt and we are unable to service another loan let alone obtain one!
If thy shut it down I wont be able to afford to pay anything!
I asked if there was a specialist team I could be referred to but he said no.
I got an integrated client account in the mail stating
i owe $X. It was not a demand letter or anything like that.
So stressed sad.gif



Yep this is their latest policy. Also if you have any outstanding documents they will not bargain at all - so you need to contact your accountant to make sure EVERYTHING is up to date.

Given it's a BAS debt, the ATO see it as this:

You are collecting the 10% GST on their behalf, it's not your money. Your payment for collecting this for them is the 10% refund on your purchases.

As PP have said, if it's PAYGI then your accountant can arrange for these to be reduced (just make sure the BAS is lodged on time). The only other thing your accountant can do is to apply to have any GIC remitted.

Unfortunatly, if they have sent it to their debt collection agency there is nothing your accountant can do for you - the debt collection agency will not talk to us.

However my only other suggestion is to just make payments of however much you can afford to without actualy formalising the agreement.

#23 PrincessPeach

Posted 12 April 2012 - 01:44 PM

Also, bankruptsy doesn't always means the ATO will forgive your debt. They can re-instate it if they want.

#24 Cherish

Posted 12 April 2012 - 02:24 PM

Not gst registered- so that doesnt apply.

I do the bookwork.

I cannot believe the situation Ive got myself
In. sad.gif

#25 PrincessPeach

Posted 12 April 2012 - 02:34 PM

Don't beat yourself up - we have a very complex tax system (and i work in it!).

If it's integrated account, but you are not GST registered then that means PAYG installments.

Assuming your 2011 tax return is lodged, then it should only be the 2012 financial year installments.

These payments can be reduced (and down to nil) so contact your accountant - the cut-off for your quarterly installment statement is this month.

Also, lodge your 2012 return as soon as possible. These installments are calculated on the last return lodged, so if you have had a bad year, it will help reduce them.




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Wondersuit heaven: Bonds & Disney launch exclusive collection

Bonds and Disney fans with babies to buy for will be celebrating this news. Bonds and Disney have just released collaboration Wondersuits.

Town welcomes first baby in 28 years

Since the 1980s, the Italian town of Ostana had not seen the birth of a single baby.

Great-great-grandma delivers great grandchild in her own home

''I've delivered calves, lambs, dogs and cats, but nothing like this.'' This 'Super Gran' calmly peeled the amniotic sac over her great-grandson's head before discovering the umbilical cord was wrapped around his neck ... twice.

How to start teaching your kids road safety

It's something that can be taught as early as possible and reinforced as they get older and more mobile - even from toddlerhood.

Just announced: Bugaboo Cameleon³ Classic+ Collection update

Meet the brand new understated chic model from Bugaboo.

The emotional moment a mum hears her late son's heartbeat

It's been two and a half years since Heather Clark's seven-month-old son Lukas passed away.

Nine reasons why you have 'brain fog'

One minute your productivity is skyrocketing and the next you're sitting there trying to focus – just like that you draw blank, your brain, mush.

I had a caesarean and it was beautiful

Guess what? Despite not pushing him out, I cried, and my heart skipped, and I felt the rush of love and pride when I saw him for the first time.

Microcephaly still a mysterious condition around the world

For parents, having a child with microcephaly can mean a life of uncertainty.

7 baby firsts you won't see on milestone charts

Here are a few 'other' baby firsts you may not have been expecting, but you'll want to be ready for.

Why it's important to vaccinate on time

My son was born on the 1 July 2014. It's a fabulous birthday, don't you think? Not only does the first of July ring in a new financial year, but it also means we've hit the year's half way mark.

Naturopath treatment allegedly left baby "days from death"

A naturopath whose treatment of a baby boy allegedly led to the infant being severely ill has pleaded not guilty to charges against her. 

Andy Murray's emotional speech to pregnant wife after Australian Open

A teary-eyed Andy Murray promised pregnant wife Kim he'd be on the next plane home after his turbulent two weeks at the Australian Open came to an end.

This toddler and his duck BFF will melt your heart

A small boy in the US has struck up a quacking good friendship with an unlikely companion ... his pet duck. 

Great news for coffee drinkers - caffeine is good for your heart

Researchers have found that, contrary to prior belief, caffeine does not cause health-threatening heart palpitations.

I always wanted children - but I've found other ways to be maternal

I've always been one of the most maternal women I know.

When only one parent wants to know the gender

For some couples you either both want to know the gender of your unborn baby, or you don't. For others, it's not that simple.

'No jab no play' could hurt disadvantaged children, experts fear

Tough new "no jab no play" laws could hurt children who have not been immunised due to family dysfunction, poverty, or poor access to medical support, experts warn.

Zika virus: Airlines offer refunds to pregnant women

Airlines and cruise companies across the world are offering refunds or travel credits to pregnant women who are scheduled to visit countries struck by the devastating Zika virus.

#meditateonthis: Mums fight back against PND ignorance

Not all women will require medication, but many will. And there isn't and shouldn't be any shame in that.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Penny Wong

'The most hurtful argument in the marriage equality debate'

Labor frontbencher Penny Wong is used to to hearing arguments against same-sex marriage. But for Australia's most prominent gay politician, one hurts more than others.

Does exercise have to be fun to work?

Some things in life are inherently served with a big scoop of fun: balloons, bubbles, cupcakes to name but a few, but exercise?

Hair dye gives woman second-degree burns

She wanted a fresh colour for 2016, but instead she got chemical burns.

Kelly Slater saves mum and toddler from 'freak wave'

A Perth family has thanked US surfing "legend" Kelly Slater after the star saved a mother and a young toddler from "a freak wave" in Hawaii.

Apple recalls millions of power adapters

Tech giant instigates massive international recall of power point adapters due to risk of electric shock.

Toddler's adorable alphabet goes viral

It's impossible not to share this little boy's excitement  about the alphabet.

Tot's nighttime waking saves family's life

Like all tired parents, Monique and Kyle Ruppel were looking forward to the day their 15-month-old daughter Celia would start sleeping through the night. 

Australian mum gives birth to quintuplets

An Australian mum who has shared the ups and downs of carrying quintuplets has welcomed her five babies into the world.

Dad of four girls faints at gender reveal for fifth baby

It was all too much excitement for this dad.

The simple way you can help your baby's language development

The way parents respond to their child's babbling can shape how their infants communicate.

Zika virus is 'spreading explosively': WHO

The World Health Organization announced that it will convene an emergency meeting about Zika.

National database recommended for child protection cases

Baby Ebony was repeatedly failed by the agencies tasked with her protection before her horrific death at the hands of her father, South Australia's deputy coroner says.

Hospitals put babies at risk by ignoring policy on elective caesareans

Thirty-eight weeks or 39? Non-medical factors are pushing women to have elective caesareans earlier than official guidelines - and hospitals are playing along.

Police help deliver baby on busy roadside

Two police officers delivered more than a traffic fine by the side of a busy Melbourne road yesterday.

1D's Louis Tomlinson shares first photo of baby

One Direction's Louis Tomlinson has posted the first picture of his baby boy, Freddie, on social media.

 

FREE TICKET

Free first aid demonstrations daily

Get your free ticket to the Essential Baby & Toddler Show and save $20 - register online now!

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.