ATO to commence pursuing and enforcing debt recovery: taxpayers urged to get in touch for help

After the JobKeeper program’s formal ending, ATO has now stated that it will start recommencing pursual and enforcement of the debt recovery actions. The Tax Office has already started issuing letters warning the taxpayers of possible strict actions if they have not held good on their tax obligations and deny getting in contact of the Office.

The ATO has also stressed that wherever appropriate, it will also resume the imposition of penalties. It had suspended its debt, audit and lodgement work from the time when COVID-19 crisis was at its prime.

However, ATO has assured that serious actions will not be taken if the taxpayers and practitioners reach out for help considering the significant impact that the last year’s bushfires, COVID – 19 and floods have had. It has committed to provide help and assistance to anyone who gets in contact with them.

The ATO also urged the accountants to ensure the clients continue to lodge the return even if they are unable to pay right away and mentioned that tailored payments are available when required.

The ATO spokesperson said that “Don’t ignore our letters — it’s important to talk to us about the client’s position. If you or your clients have overdue obligations or are worried about compliance action, give us a call and we will work with you to find a solution.”

Please feel free to contact your trusted advisor at Vivid Partners should you have any questions about your tax obligations or want to get in touch with ATO through us.

Vivid Partners
08 6270 2876
info@vividpartners.com.au

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Vivid Partners. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your advisor at Vivid Partners.