How Can You Be Released from Your ATO Tax Debt?
April 23, 2020Will the ATO Bankrupt Me?
April 23, 2020Tax debts can arise for several reasons:
- Misunderstanding Tax Obligations: This often happens with small businesses where the owner doesn’t understand all required taxes. Including tax such as personal income tax, business income tax, GST, PAYG installments, and superannuation owed.
- Using ATO Payments for Working Capital: Businesses sometimes use ATO payments to cover working capital needs.
- Illness or Death in the Family: Personal issues can impact the ability to pay taxes.
- Marital Issues: Divorce or separation can lead to financial difficulties.
- Accountant Issues: Problems with your accountant can result in unpaid taxes.
- Bookkeeping Issues: Poor bookkeeping can cause tax debts. Such as, incorrectly assigned personal expenses to business which is then corrected.
- Reduced Business Cashflow: Decreased cashflow can make it hard to meet tax obligations
See an extended article on Why Do I Owe the ATO Money & What to Do About It?.