Money owed to the ATO (Australian Taxation Office) is known as tax debt. Not making allowances for tax bills, not registering for GST at the appropriate time or falling behind with paying tax bills can easily lead to mounting debt for your company.
Whilst any type of debt represents a tangible risk to your business, you may be concerned that this type of debt is more serious or harmful to your business - but this isn't necessarily the case. The same strategies that we have helped hundreds of Australian companies to implement to help reduce and remove their debt can also be applied to your tax debt.
This means that you can continue to trade whilst paying off your tax debt in a manageable way.
HOW SERIOUS IS TAX DEBT?
Any type of debt presents a risk to you, your business and its assets and should be taken seriously. Tax debt is no exception. The consequences of not paying off tax debt can include increasing interest and liabilities, penalty notices which can make directors directly responsible for company debt, Garnishee notices which can allow the ATO to take funds directly from your accounts and even winding up notices which will see your company put into liquidation.
The good news, however, is that tax debt is exactly the same as any other unsecured or creditor debt which means that with a proper plan in place, all of these situations can be easily avoided and your company can still trade as normal.
WE CAN HELP YOU REDUCE YOUR TAX DEBT
There are a number of ways we can help you take control of your tax debt and keep your business running. Here are three of the most popular strategies we've used to help businesses just like yours, however each and every business is different, so for a plan that's tailored to your business, get in touch with the My Business Path team.
Need help to figure out your best option?
If your business is struggling with tax debt, or would like to know more about the options open to you, book in a free consultation with the My Business Path team to discuss your situation.