In welcome news, the ATO has suspended its plan to ramp up the serious debt collection actions for businesses located in NSW and Victoria as a result of the increased COVID lockdowns.
The ATO had earlier started contacting taxpayers to follow up unpaid tax debts which rose substantially last year. Although the ATO has indicated it will not pause all debt collection activities like last year, it is likely to be a softer approach to try and assist taxpayers with their overdue debts.
Actions such as issuing garnishee notices, statutory demands and disclosing and reporting business debts to credit agencies have halted which gives taxpayers some breathing space in these difficult times.
However, we do recommend taxpayers be proactive and use this time to sort out their cash flow and prepare for the need for these debts to be paid. If you need assistance or advice on your tax debt, please do not hesitate to contact us.