The message is clear: the honeymoon period is now over for businesses that were extended during the COVID-19 pandemic, as the ATO works to recoup more than $50 billion in debt.
The tax office is once again perceived as the 'bad cop' on the beat and it's the Albanese government that's given it a mandate to go hard and recoup more than $50 billion in debt owed, most of it by small business.
That Liberal government's "Statement of Expectations 2021" was aimed to protect businesses struggling during the pandemic. "It is imperative that we return to normal operations. The ATO is shifting focus to return to usual debt recovery processes."where he warned "there's also a significant risk of businesses trading while insolvent and creating a situation where all creditors — including suppliers and employees — miss out on what they are owed".
This is why the agency's public messaging – and its communication with small businesses – started to dramatically shift last year. Since July 2022 and February this year, the ATO has issued more than 30,000 director penalty notices that make people personally liable for tax and superannuation debts and give them just 21 days to pay.But the director is now responsible for paying that debt, which in many cases runs into hundreds of thousands of dollars and could bankrupt them.to unprecedented levels and it's pushed the rate of insolvencies to around peaks seen just after the global financial crisis.
The ATO won't tell Mr Christodoulou how it came to the $437,000 figure, just that he is responsible for paying it. "For those of us working on the frontline, dealing with people in financial difficulty each day, we know some of the terrible things they've dealt with in recent years causing serious mental health issues," Mr Archer says.
Taxation Super Superannuation Unpaid Super Ato Australian Taxation Office Director Penalty Notice Garnishee Notice Tax Debt Tax Debts Tax Dispute Debt Owed To The Ato Superannuation Guarantee Charge Debt Recovery Debt Collection Debt Business Business News Econonmy Auspol Richard Boyle
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