Difficulty in paying your tax debt
(business clients)

What if you cannot pay your tax debt on time?
If you cannot pay your tax debt on time, please contact us immediately on 13 11 42 to discuss your circumstances.

When you speak to us about payment of your outstanding tax debt or remission of general interest charge (GIC), we are committed to:

• understanding your situation and individual circumstances
• being fair and equitable in the application of the law, processes and policy
• considering your case on its merits and assisting you to move on, and
• assisting you where possible if you are attempting to engage with the Tax Office and do the right thing.

In some circumstances, you may need to provide written details of your financial position, including a statement of your assets and liabilities and details of your income and expenditure.

We also need to understand what steps you have taken to obtain funds to pay your tax debt, as well as what you have done to make sure you meet future tax debts on time.

You may be given extra time to pay, depending on your individual circumstances.

If we give you extra time to pay, you are required by law to pay the GIC. The GIC is tax deductible in the income year in which it is incurred. The law provides the Commissioner with the opportunity to remit all or part of the GIC in certain circumstances. Further information about our remission policy is available at chapter 93 of the ATO Receivables Policy.

How do you know how much you have to pay?
Income tax

Your notice of assessment will tell you how much tax you have to pay, if anything, and when you must pay to avoid being charged interest for late payment.

Activity statement accounts and other tax types

Please contact us on 13 11 42 to obtain your account balance.

When do you need to pay?
Please refer to Key dates for businesses to determine when you need to pay your income tax.

If you are unsure, please contact us on 13 28 66. GIC is imposed on any amount not paid by the due date. The GIC on any tax payable accrues from that date.

In the case of activity statement debts, the due date for payment will vary in accordance with the lodgment due date.

How do you pay?
The different methods of payment are set out in Payment options and methods.

The Tax Office does not accept payment by credit card.

For more information on payment methods, phone the ATO Payments hotline on freecall 1800 815 886 (8.00am to 6.00pm EST) or email payment@ato.gov.au

What if the payment will cause you serious hardship?
Serious hardship is when you are unable to provide food, accommodation, clothing, medical treatment, education, or other necessities for yourself or your family, or other people for whom you are responsible.

You can apply to the Tax Office for a release from payment of your tax debt.

To find out how AlanAssociates can help you, call us on (0414)78 1639 or complete our quick Contact Form.