Problems obtaining Tax Debt Loans or a Tax Office Payment Arrangement?
Tax Debt Loans can help when you are struggling to pay an ATO Debt or meet a payment arrangement. Regardless, you may not have the money to pay your outstanding ato debt. In the same way, you may not have the cash flow to pay your ATO obligations + an ato payment plan. Consequently:
- Firstly, you can't pay your taxes because you don't have enough money.
- Secondly, your income isn't sufficient for a payment plan and to cover your other expenses.
- Thirdly, you have failed a payment plan or the Australian taxation office wants the full payment of your ATO debt.
Indeed, there is a variety of finance solutions available. Consequently, both unsecured finance and secured finance using a home loan or vehicle are available.
Tax Debt Finance Comparison Chart
There are several different tax debt finance solutions available. However, each debt solution has its pros and cons suited to particular circumstances.
In general, businesses only need a little more time to help get them back on track. However, time may be against you, and you need a fast solution for overdue tax debt.
On the positive side, Loan Saver provides fast Tax Debt Help and ATO Debt Loans that offer tax relief. After all, running a business while managing problems with the ATO and an outstanding tax obligation can be difficult. However, debt advice is available to help improve your financial situation & cash flow issues by paying your debt.
All you need is help to get your tax debt consolidated and move forward.
Has your ATO Debt Consolidation Loan been Declined?
Conventional banks cannot lend for ato debt purposes and as such won't approve finance to resolve ATO problems. Nevertheless, We have lenders who can give money for ATO problems.
Loan Saver Network advisors specialise in approving loans for tax debt. Given that, we consistently obtain loan approvals for previously declined ATO debt loans,
Do you have a Problem ATO Payment Plan?
The ATO can cancel an ato payment plan arrangement even if payments are made by the due date. In effect, a cancellation can happen if you don't meet other responsibilities like lodging your Bas or any other ATO obligation. Hence, a cancelled ATO payment plan puts you at risk of legal action or bankruptcy. Therefore, reduce your risk and consolidate your ATO debt with a choice of tax debt loans.
Has the ATO Threatened Bankruptcy?
The ATO can be heavy-handed with debt recovery. In brief, using Court Judgements and Bankruptcy to force the sale of assets to recover money. For this reason, refinancing taxes owed could save you from an ATO Bankruptcy or Liquidation.
Has the ATO Threatened to Wind Up Your Business?
The ATO can wind up your business with a forced liquidation. Therefore, in the process of collecting unpaid business tax debt, the ATO can remove a business from trading. Subsequently, we have successfully obtained finance and kept business trading even with pending wind-up orders or court proceedings.
Pay your Tax Debt Fast with Loan Saver Network
If you have an ATO debt, in most cases you have an income. Certainly, you cannot incur an ATO tax debt without making a turnover or a profit. Therefore, in most cases, there is a debt solution available to fix your ATO issue.
There are many forms of tax obligations that small business needs to manage. Consequently, the day to day management of the requirements can quickly create tax office ATO debt. For the most part, we find ATO issues arise from confusion with business obligations. Indeed, the first time you realise you have a tax bill may be on completion of the tax returns.
Tax Debt Video – The Benefits Of Consolidating Loans To Solve ATO Debts
Business Tax Obligations that can cause Problems
- Firstly, prepare and lodge BAS activity statements each quarter or as advised by your accountant.
- Secondly, falling behind on your company PAYG income tax obligations. Therefore, this includes your employee tax contributions.
- Thirdly, company income tax obligations (not for sole traders). Indeed, you know this figure only once you complete your company tax return.
- Also, being behind on your employees' superannuation.
- Indeed, behind on your income tax obligations. Consequently, in most cases, you won't know this amount until you complete your tax return.
- Certainly, understanding the deadlines for income tax, GST, superannuation lodgements, and payments.
- Finally, please ensure the tax owed is not just for one specific financial year. Therefore, you should try to understand the tax amount owed up to the current year. Certainly, then you will know what loans for tax debt are required.
With the many tax liabilities listed above, it is easy to make a mistake. Nevertheless, Loan Saver Network can assist and advise on the fast ATO debt loans available to you. Certainly, debt consolidation of your tax bill can reduce your overall debt payments. Indeed, in most cases, your loan can be tax deductible.
Read further information below on Australian Taxation Office FAQs for ATO Debt Loans.
Let's talk about a debt solution that suits you.
FAQs for Tax Debt & ATO Debt Loans
Tax Debt FAQs
The ATO guidelines for releasing tax debt are related to the type of tax debt and your situation. As such, in certain cases, you may be able to be released from the tax debt however you need to show serious hardship if you were to pay the tax debt. However, the term serious hardship is a grey area without clear guidelines.
We have seen cases where clients are released entirely from tax debt, though it is infrequent. As a result, the most common result is a remission of the penalties and the general interest charge (GIC). However, the ATO will want to assess all financials and BAS lodgment up to the current date to allow them to understand your full tax obligation.
Types of tax debt eligible for release
- Initially, personal income tax.
- Also, PAYG income instalments.
- Medicare Levy.
- Finally, general interest and penalties associated with the tax debts.
Types of tax debt not eligible to be released
- Superannuation Guarantee Charge for employees
- Also, PAYG withholding tax for employees
In most cases, there is a mix of tax debts payable that can and cannot be released. As such, in most cases, you would require a mix of either release of tax debt, ato payment plans, or help with tax debt loans to pay out the tax debt entirely.
Contact us or seek professional advice to discuss your options.
Tax Debt Negotiation can give you a tremendous financial advantage. However, there are a few conditions the ATO requires before approving any tax debt reduction.
- The ATO requires all of your Bas lodged and financials up to date. Indeed, the ATO wants to understand the full tax debt obligation due. For that reason, the ATO will want to know the entire tax obligation, including interest and penalties to the account.
- Consequently, this may not be practicable as there may be a pending business wind up, bankruptcy, or court case for the debt. Furthermore, it is essential to disclose any court matters or wind up to us. As such, this can assist us in determining if a tax debt negotiation is the best solution for you.
- Finally, tax debt is not usually fully waived. However, we have seen certain cases where it has been waived entirely. Consequently, waiving a debt has to meet very specific hardship and debt waiver policies.
ATO payment plans and negotiations are suitable when you have time and not when you are experiencing a severe tax debt hardship issues and pending insolvency action.
Navigating the ATO financial hardship policies is complex. Therefore, to gain hardship approval you will need sufficient supporting evidence for ATO approval. Furthermore, successful tax debt hardship applications can take anywhere from 14-60 days to be approved.
As a result; faster solutions such as caveat loans may be required to prevent legal action. However, if speed is not a critical factor; and you have time before legal proceedings then applying for hardship may still be a preferable option.
Certainly, if there is little or no time, or you have received a legal letter; then finance to pay the tax debt may be a more suitable solution.
Australian Tax Office Website: Policy guidelines for ATO Tax Debt Hardship
Yes the ATO can bankrupt individuals. However, businesses are wound up under an involuntary business wind up or liquidation. Certainly, someones financial situation can be investigated and understood under bankruptcy. Consequently, without a transparent disclosure of assets, it can be difficult to gain a full picture of the assets available to sell and pay a debt.
Therefore the bankruptcy trustee would have the power to seize assets allowed under the law. As a result, this includes freezing bank accounts and have the power to investigate your assets and what can be sold. In contrast, the ATO has no way of knowing if you are an individual with a large asset base hidden somewhere.
The ATO has several collection methods at their disposal for collection of ongoing and outstanding payments. As a result, you may encounter, or use the methods listed below.
ATO Automated Tax Collection
These methods are standard practices implemented by the ATO to simplify business compliance.
- Single Touch Payroll
- Equally, Electronic Lodgement of Superannuation (SGC)
Tax Debt Payment Plans
- Firstly, Payment Plans can be established with the ATO. However, not all payment terms offered can be anywhere from 18 months to 2-years to clear the ATO debt. Therefore, achieving a suitable payment may not be possible with such short payment terms. Furthermore, click here for more information on ATO Payment Plans and the benefits and risks for your business.
The debt is sent off to one of several debt collection agencies to recover the debt.
Finally, the ATO can lodge a second mortgage to secure their debt. Consequently, a second mortgage would allow the ATO to force the sale of your property in the event of a default. Indeed, a second mortgage would avoid the need to employ and pay a bankruptcy trustee to collect on the tax debt.
How does the ATO Force Debt Collection?
When a business doesn’t fit into the payment plan requirements of the ATO, then other collection methods are used. However, along with these collection methods is usually the closure of your business. Therefore, a payment plan or finance option is almost always the best solution.
- Firstly, Business Wind Up- the ATO can close your business because of tax debt. As such, the ato can force a company liquidation to pay a tax debt.
- Indeed, ATO Bankruptcy – a personal bankruptcy gives a bankruptcy trustee the power to sell your assets to pay your ATO debt.
Other Debt Collection methods
- Not economical to pursue – The ATO can hide your debt from the portal view. Consequently, waiting until you gain an asset, they can sell. Similarly, you may become more profitable and garnish funds in your bank. For that reason, we feel the correct term would be “not economical to pursue now.”
The ATO has several mandates under their taxation provisions. As a result, if you don’t pay tax or manage your obligations:
- Firstly, the ATO sees your business as causing a non-competitive environment of trade and will close your business.
- Secondly, closing or winding up your business moves the revenue to a competitor. As a result, taxes start coming in from that business.
- Thirdly, the ATO removes your business it brings competition back into your market space. i.e. the new business charges appropriately for services with consideration to the tax payable.
- Finally, the sale of assets using Business Liquidation and director bankruptcy forces the recovery of lost taxes.
Of course, selling your products and services is paramount to every business. However, meeting your tax obligations is critical. As a result, we have seen the most common cause of forced business wind up is tax debt. Therefore, applying for tax debt hardship at an early stage is essential.
Many businesses use the ATO as an unofficial overdraft facility. In effect, they are accruing tax debt by allocating tax payments to pay business expenses or fund growth. Therefore, paying the ATO obligation once the business is trading profitably. However, the ATO is implementing changes to recover funds more quickly, causing issues with these businesses.
The ATO has higher expectations regarding resolving tax debt and how to manage tax portal accounts. In summary, the Australian Taxation Office won’t allow a business to keep inflating tax debts. As such, they are implementing strategies for collection of tax when due.
In brief, if you cannot prove your ability to pay your tax obligations, the ATO will seek:
- Indeed, full payment of the outstanding debt or;
- Secondly, the closure of your business.
- Finally, you may apply for financial hardship & debt relief. However, your application must meet ATO policy guidelines.
Yes, if your debt is under $100,000, it can be set up via automated phone prompts. Also, you can set up payment plans direct with the ATO or their debt collection company. We find, the payment plans are mostly between 12-18 months and do not (usually) exceed 24 months.
All ATO tax obligations such as BAS lodgements, financials, and superannuation obligations would need to be maintained; otherwise, the tax debt payment plans would be cancelled. If so, legal action would continue.
Applying for ato tax debt hardship with the ATO is quite an easy process. However, gaining an ATO hardship approval needs to fit within the ATO policies. Consequently, there are several ways to improve your chances of approval for Tax Debt Hardship:
- Call the ATO to discuss hardship and that you are unable to meet your obligations. Indeed, the ATO will make decisions based on their ATO hardship guidelines. Keep in mind, you will need to fully cover your circumstances and show financial difficulty. Also, the ato would seek a payment plan to cover the full tax debt account when determining suitability.
- Firstly, business closure.
- Secondly, disconnection of an essential service.
- Also, repossession of vehicle for business purpose. Imminent legal action pending for non-payment of debts.
- There are hardship review limitations. Such as, you cannot be approved hardship a substantial time after an event. Such as, you suffered an illness, and you applied for tax debt hardship two years after. As such, apply for the hardship the same specific financial year.
- Finally, You cannot access bank accounts because of court orders.
If you can’t pay your tax debt, there are several options:
- Firstly, Tax debt hardship application which includes payment plans with the ATO directly. However, you may also negotiate reductions with your ATO tax debt or general interest charge.
- Secondly, obtaining finance to pay your tax debt. As a result, this could include refinancing your home loan to consolidate your tax debt.
- Thirdly, Unsecured lending.
- Also available are 2nd mortgages and caveat loans.
There are several reasons a tax debt can occur, which we have found tend to fall into the categories below:
- Firstly, misunderstanding of your tax obligations. We see this is mostly the case with small businesses where the business owner didn’t understand all the taxes needed to be paid. Such as, misunderstanding of personal income tax, business income tax, GST, PAYG instalments and superannuation owed.
- Secondly, your business uses ATO payments for working capital.
- Indeed, illness or death in the family.
- Marital issues.
- Accountant issues.
- Bookkeeping issues.
- Finally, reduced business cashflow causing problems.
We have lenders who can go up to 90% LVR against your security property. However, some factors affect the LVR, such as:
- Firstly, the type of property and location; including the size of the land.
- Secondly, property zoning, such as rural or farm zoning can attract lower LVR’s.
- Thirdly, your credit history and if debts are paid or unpaid. Indeed, there are many other LVR affecting factors.
The LVR available is very important as the loan available against your property will determine if the tax debt can be fully paid. As a result, sufficient LVR and loan amount will enable the new loan to fully cover your circumstances.
The loan process varies depending on the type of tax loan. However, see below the Loan Saver Network loan process:
- Firstly, we discuss your financial situation and identify the most suitable loan options. Hence, your finance options could include an individual or a combination of business loans.
- Secondly, we provide you with a Free tax loan proposal so you know what you can achieve.
- Thirdly, we collect documents related to your business, security property, tax debt, home loan and other loan information.
- Fourthly, we submit your loan application to the most competitive lender to meet your requirements.
- Finally, loan and mortgage documentation is completed. Of course, following this is the loan settlement and payment to the ATO.
Borrowing to pay a tax debt is very much the same as traditional lending. However, there are some differences in policies because of the higher risk in loans for tax debt. As a result, the three main loan types suitable to pay for tax debt.
- Firstly, secured short term loans such as caveat loans and second mortgages.
- Long term loans similar to traditional finance.
- Unsecured Finance options, however, these can be very restrictive and unsuitable.
- Requires Minimal income verification
- Lower Loan Ratios
- Higher fees
- 24 hour – 2-week settlements.
Specialist tax debt home loans
- Income verification and servicing requirements
- However, there are low doc loan options available.
- Also, credit issues are acceptable and reflect the pricing.
Loan Saver Network can assess the type of loans most suitable for your purpose.
Yes, several short-term lenders offer business tax debt loans. They are also other business loans such as invoice factoring, and trade finance designed to provide working capital while continuing to trade.
However, the various other business tax debt loans include:
- Initially, caveat loans and second mortgages requiring real-estate security.
- Also, caveat loans requiring vehicle security.
- However, there are also invoice factoring facilities.
- Plus, pay tax debt or obtain working capital by obtaining unsecured business cash flow loans.
- Finally, supplier financing facilities.
We have helped many people obtain finance even when there is bad credit. Indeed, the various forms of bad credit include:
- Firstly, minor defaults such as telco, electricity and gas credit defaults with <$1000 value.
- Secondly, severe defaults such as defaults >$1000 value defaults.
- Thirdly, court judgements and writs such as from the Australian Tax Office.
- Finally, business wind-up orders such as creditor and ATO wind up proceedings.
However, specialist lenders do understand credit issues which means they don’t need to be a life long jail sentence.
Loan assessments use a diverse range of information. Mostly, information such as income, property equity, your type of property and your credit history. Consequently, lenders make approval decisions based on all this information, including your credit history. Hence, credit issues don’t immediately eliminate the chance of loan approval.
Traditional lender policy will not allow lending for tax debt purposes. However, there are private and specialised lenders able to assist.
- Firstly, unpaid tax debt in the ato tax portal will prevent traditional bank approval. Consequently, banks actively look for ATO issues by confirming ATO Portal balances.
- Secondly, a traditional lender will decline loans because of tax debt.
- Finally, specialised finance such as a tax debt loan can pay a tax debt.
Tax Debt Help and Advice
At Loan Saver Network, we understand tax debt problems and the help needed to fix debt issues. Furthermore, we can assist with options you need to stay in business, protect your assets and provide tax debt relief. Indeed we can help you understand your rights and entitlements.
- Firstly, regular banks, mortgage brokers, and accountants struggle with consolidating using tax debt loans.
- However, we can assist you in avoiding government debt collectors. In particular, our tax debt loans can also provide help with wages, GST, and other expenses.
- Therefore, this can reduce your commitments and help you pay your ongoing tax obligations.
- In summary, we provide loans for business and tax problems.
- Finally, for more details, go to the ATO website or ask the ATO for help regarding your tax debt.
Loan Saver Network advisors provide custom solutions for paying back tax debt with business finance. Indeed, we advise on the latest tax debt loans with competitive interest rates. Hence call 1300 796 850 today for help with your ato debt strategy.