What is involved with ATO Tax Debt Negotiation?

Can my ATO payment plan be interest free?
April 23, 2020
How do I apply for ATO Tax Debt Hardship?
April 23, 2020

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.

  1. 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.
  2. 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.
  3. 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.