Australians are required to pay tax according to their income on an annual basis. Those who fail to fulfil their tax obligations by their due date may quickly become subject to harsh penalties imposed by the Australian Taxation Office (ATO).

One of these penalties, known as a Garnishee Notice, is an official notice issued by the ATO to a third party compelling them to make payments on your behalf in order to recover your outstanding tax debt.

Whilst the distribution of a Garnishee Notice is most common when a taxpayer owes a tax debt, the ATO can also issue a notice where:

  • Your tax has not yet become due;
  • You have already entered into a repayment arrangement;
  • You are negotiating with the ATO; or
  • You have outstanding director’s penalty liabilities.

An ATO Garnishee Notice is a very serious action and can have severe implications for both businesses and individuals. A Garnishee Notice cannot be ignored and it is important that you take immediate action.

At this stage you have two options:

  1. Pay back the tax debt as quickly as possible
  2. If you do not have the funds available, you should seek the professional assistance of a financial advisor who can outline your formal options.

For more information on ATO Garnishee Notices or to find out how CRS Insolvency Services can help you, give our 24/7 toll-free hotline a call today on 1800 210 073.