ATO chasing Building & Construction Industry Tax Debts
The ATO has taken a hard line when it comes to Building and Construction Industry clients and their Taxation Debts.
We urge all of our Building and Industry clients to read this information and understand any possible repercussions of any outstanding Tax Debt that they may have.
The following statement was issued by the ATO to all Tax Agents...
“The building and construction industry represents a disproportionate amount of our debt book. Through research we have identified some worrying trends that affect the industry and want to provide support and assistance to help keep your clients on track.
From late September we will be contacting you regarding your clients who continue to have outstanding tax debts. We understand that even viable, well-run businesses occasionally experience short term cash flow issues and struggle to pay on time. We want to work with you to support your clients.
By contacting us directly regarding their outstanding debt, we can offer a range of payment options to help them get back on track sooner and reduce any interest they may be liable for…
If you do not represent your client from an overdue debt perspective, please let us know how we can contact them directly when we call. You could encourage your client to understand and address the amount they owe, including through an arrangement to pay, by logging onto their ATO online or myTax account (for individuals and sole traders only).....
While most contractors make every effort to pay their fair share of tax, those that fail to meet their obligations are gaining an unfair financial advantage over other contractors working hard to do the right thing.
For any of your clients who do not pay or make arrangements to pay, we may recover the outstanding debt through a garnishee notice. This means that we may take money from your client’s bank account or funds that are owed to them by a company or business they contract to.
We look forward to working with you to get the best possible outcome for your clients”
Full transcript can be found here
For further information on this matter please call our office on 07 5502 6673