Tax debt issues can lead to the ATO taking legal action. There are two standard notices that you may receive:
ATO Court Wind-up
application
ATO Court Wind-up proceedings can be taken against a company if it has failed to pay its debts and a suitable payment plan has failed to be negotiated with the ATO. If the client receives an ATO Court Wind-up application, they generally have six weeks to pay the debt off or enter into an aggressive payment plan to pay off the debt to avoid the ATO winding up the company.
Filing for Bankruptcy
(as a Sole Trader)
In the case of a Bankruptcy Notice, this is the final stage of the tax debt recovery process. If you’re facing ATO debt bankruptcy action but believe you can pay your debts, you need to provide the ATO with clear evidence of your ability to pay. With any tax legal proceedings, the most important thing to know is how you can stop legal action from taking place.
Talk to the tax debt expert at Tax Defenders as soon as possible
If this is your current situation, contact our team of experts today.