With Easter fast approaching it’s time to see if your cash flow can withstand a few shocks during the holiday break.
If your cash flow is a bit tight, don’t feel too bad, the ATO are struggling to. The article below was in the Financial Review on Thursday. March 19.
The ATO have now decided they will be collecting their debts sooner rather than later as their cash flow is now way too tight.
What does this mean for all of us. Four things;
Don’t let the ATO beat you to the punch and collect money before you do. Be diligent and proactive and have a strict policy for people who are outside your usual credit terms.
The broken promises you hear from delinquent clients should be inside 90 days from the invoice.
Let Slater Byrne Recoveries help your cash flow and do the hard work to collect the hard debts.
Tax Commissioner Chris Jordan says: “We will be taking legal action earlier when warranted.” Louie Douvis by Joanna Mather
The Tax Office will act more swiftly to recover unpaid tax and initiate bankruptcy procedures as outstanding annual debt climbs beyond $20 billion.
Tax commissioner Chris Jordan has said the ATO is bringing forward the point at which it takes legal action to recover debts from both individuals and companies.
While the ATO has in the past waited for a company’s outstanding debt to reach more than $340,000 before acting, for example, the benchmark for action could be slashed to $93,000.
“We will be taking legal action earlier when warranted,” Mr Jordan will tell a Tax Institute conference on Thursday.
“This means initiating bankruptcy and wind-up action where there is evidence that a taxpayer is insolvent, and looking to use other statutory powers where businesses have failed to pay employee superannuation entitlements or pay amounts held in trust.”
Debt is accumulating at a faster rate than the ATO can ramp up debt management services.
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