[Cherish]

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

[caesie'n'linc]

Call them and talk to them, work out a payment plan 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

[~~mumsie~~]

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.

[her mum]

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...

[Cherish]

I did call them.
The guy I spoke to was not at all comassionate or helpful

He wanted half upfront (cant happen) then
Basically scoffed at what I could afford.
Then he mentiomned bankruptcy,recoveries and closing our business down
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

[Cath-In-SA]

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.

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.

[Rach42]

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

[MummaDiva]

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.

[WibbleWobble]

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.

[protart roflcopt...]

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.

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.