ATO Payment Plan: The Australian Taxation Office (ATO) warns taxpayers of severe consequences, including legal action and winding up, if they fail to pay their tax and super on time and in full.
In a stern reminder, the Australian Taxation Office (ATO) is leaving no room for procrastination, emphasizing the need for taxpayers, especially businesses, to promptly settle their tax bills and super contributions. Failure to do so could result in costly penalties and interest charges.
With key payment deadlines fast approaching, ATO Assistant Commissioner Jillian Kitto emphasizes that tax and super must be paid in full and on time. There’s no wiggle room for those who miss the due date.
For businesses, the pressure is on, as they must ensure they pay their employees’ super contributions by the critical date of October 28, 2023. The ATO is leaving no stone unturned, underscoring the seriousness of these obligations.
While the due dates for tax payments vary depending on the type of return and whether you use a registered tax agent, Kitto advises, “Our preferred approach is to work with you through engagement rather than enforcement. We expect anyone facing financial difficulties to reach out to us or their tax professional before their bill is due.”
The ATO suggests that if full payment is not possible, eligible individuals or businesses may consider setting up an ATO tax payment plan.
Kitto also emphasizes the importance of early engagement, stating, “It is in your best interest to engage with the ATO before the bill is due if you can’t pay in full and on time. This means engaging with us before it becomes a tax debt where interest penalty will accrue daily – and before we take firmer action.”
Interest on overdue tax debts compounds daily at a substantial annual rate of 11.15%, adding further urgency to the need for timely payments.
For those facing financial hardships, the ATO has put forward various options to provide assistance.
However, for employers who miss the deadline for super contributions, the consequences are serious. They will be required to lodge a super guarantee charge (SGC) statement and pay the SGC to the ATO. Late super payments will not be considered tax-deductible.
The ATO makes it clear that for taxpayers who choose not to engage or fail to pay on time, swift and strict actions will be taken.
These actions involve issuing a director penalty notice, garnishing wages, disclosing the business’s tax debt, and in severe cases, legal measures such as winding up a business.
The ATO’s message is loud and clear: It is time to pay and tax and super obligations are non-negotiable, and timely payments are essential to avoid the potentially severe financial consequences of non-compliance.
If you’re grappling with tax debt or super contributions, it is wise to seek professional guidance as soon as possible.
Consult AVA Advisory, a reliable source of financial guidance and expertise. With your financial well-being at stake, don’t hesitate to contact us today at 1300 181 220 or book a free consultation to provide the support you need.