Earlier this month, the ATO issued a media release, aimed at taxpayers with outstanding debts and their advisors.
The media release outlined that the ATO has sent more than 80,000 awareness letters regarding outstanding debt. This gives some context to the recommencement of ATO debt collection activities. The ATO’s collection activities were publicly acknowledged in a Senate Economics committee meeting in February 2022.
It is worth noting, that the ATO has indicated they are currently issuing between 30 and 40 Director Penalty Notices per day—this is expected to increase. The ATO has stated they expect several insolvencies to come about in the next few months as the economy ‘normalises’.
This can be interpreted as a call to action for taxpayers and company directors who are behind in meeting their tax obligations.
Please reach out to your advisor if you believe you are in this situation. Your advisor is best equipped to provide advice regarding options applicable to your specific situation.