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Debt with ato


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#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 Feral 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.




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