In June 2009 the Australian Taxation Office introduced new measures for small businesses, which included 12-month general interest charge (GIC) free payment arrangements. It is important that businesses who have taken up this offer comply with the terms of their arrangement. If you have entered into a 12-month GIC free payment arrangement, be sure to make all of your payments by the due date.
If for some reason you cannot stick with your agreement, contact the Tax Office and let them know (or have your accountant do it for you).
The ATO have said where a business does not maintain their arrangement and fails to make contact, they could take firmer action to collect the debt. This may involve any of the following:
- issuing garnishee notices
- taking legal action to recover the debt
- initiating proceedings leading to insolvency.
We encourage any business that is having difficulty paying the instalments to contact the ATO us as soon as possible on 13 11 42.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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