ATO Payment Arrangements
If you are struggling to pay a tax debt on time, your best course of action may be to look at a payment arrangement.
What is a Payment Arrangement?
A Payment Arrangement is an agreement the ATO and a taxpayer agree to that allows the tax payer to “pay off” a tax debt in a series of installments.
What Kind of Terms Should I Expect?
The terms that the ATO may agree to change based on the circumstances. The main factors considered are prior payment history, the type of tax involved and the total amount owing. Generally for a taxpayer with a clean record we can get them a Payment Arrangement of at least three months and usually longer, often with no interest applied.
What Information do I have to Provide?
For debts under $100,000 we usually only need your TFN or ABN. For larger debts, the ATO will usually ask us for some kind of proof you can meet the arrangement. We have a lot of experience in putting this information together and can help to bring records up to date if necessary. In extreme cases the ATO can ask for security to be provided to back an arrangement.
What happens if I default on a payment arrangement?
Beware! Whilst the ATO will be understanding the first time it is necessary for you to enter a Payment Arrangement, it will be much less understanding if you default upon the agreed payment dates.
For a start, it will be a standard term of the agreement that if a payment is made late then all future payments become immediately due and payable.
Also, it is likely that if you default on a payment arrangement, the matter may be referred to the enforcement division and your company will be put on the “railway tracks” of the enforcement process. That is, the ATO will simply apply its processes and procedures in pursuit of the outstanding debt and there will be little if any further negotiation.
How can we help?
We are experts in getting you the best payment arrangement possible. When you give us the authority to negotiate on your behalf and the necessary information, we will take it from there. For larger debts we can assist you to bring your records up to date so we can present the strongest case to the ATO.