The Australia Taxation Law authorize ATO to impose penalties and interest on a range of late payment. Including not lodging on time and making a misleading claim. Under a lot of circumstances, taxpayers are imposed with heavy penalties and interests. And sometimes the amount can consist half or even more of the total tax debt.
So you must have heard that someone had remitted their tax debt by talking to ATO. But can this happen to your tax debt?
When it comes to this question, there is no simple answer as "yes" or "no".
There is a set of factors that ATO checks when considering the remission. For example, the general economic downturn or the taxpayer not having enough fund to payback ATO are not good reasons to get a remission. And during the recent years, ATO is found to be more aggressive in their debt collection practice. As a result, it was difficult to get any remission if the taxpayer cannot propose a payment plan to clear the outstanding debt in a limited time.
Despite the many restrictions, ATO does have guidelines for tax debt remissions, and they are still requested by the law to follow these guidelines. But each case is different. So even the similar cases could end up with entirely different results.
And this is why the taxpayers should consult with the tax or legal professional when considering the remission application. The benefits of doing so include:
1. Getting an honest opinion on their unique cases. For achieving the best possible result for the application, it is essential for taxpayers to understand the dos and don'ts for the application process.
2. The professionals write the application in formal letters which increase the chance for the application to be approved.
3. Typically, multiple factors contribute to the interests and penalties. An experience tax matter expert and can help the client to put together the facts to convenience ATO to grant the remission. This helps the taxpayers save heaps of time in preparing the application.
Maybe you are currently troubled by the tax debt and looking for the chance to get out. Do not let the tax debt stress you down. Please feel free to contact us for a free consultation. We are here to help the taxpayers in need to get back on track.