Tips for Managing Business Tax Debt
As a company owner, it is essential to be proactive in managing your business tax debt. If you neglect your business tax obligations, it may lead to dire legal consequences. The ATO can issue you with a statutory demand, garnishee order or a director penalty notice. Read below for some tips on managing your business tax debt.
Maintain your financial records
If you are struggling with business tax debt, it is important to maintain accurate financial records. Make sure your cash flow statements and profit and loss statements are updated to reflect your company’s position. This is essential to gain a true understanding, and to plan how to move forward accordingly.
2) Prioritise your business tax debt
Ignoring your unpaid business tax debt will only cause more stress and it will also exposure you to personal liability. Make sure that you continue to lodge your business activity statements on time. Failure to lodge your business activity statements within 3 months of their due date will result in personal liability of the company director.
3) Organise a payment plan
Once you know how much you can afford to pay back on a consistent basis, contact the ATO and organise a payment plan.
4) Consult an expert
If you are still unsure, we assist businesses who are concerned about their solvency and provide professional advice here at CRS Insolvency Services. We are not biased towards an insolvency appointment if that can be avoided. If you would like more information, please call our 24 hour insolvency advice line on 1800 210 073. We offer FREE initial advice.