Using self help service to pay tax debt by installments

If any of your clients have a tax debt of less than $25,000 it is possible for them to pay their outstanding debt by entering into a payment arrangement with us and paying off their debt by installments.

How to make a payment arrangement
A payment arrangement can be organised either by your clients themselves or by you, on behalf of your clients, by calling our automated self-help numbers and following the prompts – there is no need to talk to a tax officer.

Provided we accept the proposed arrangement, personalised payment slips will be issued within 15 working days to the postal address we currently have for your client on our records, which may be your own address.

To use this automated service you will need:

• the Australian business number (ABN) or tax file number (TFN) of your client
• full details of the amount outstanding – check portal to establish account balance, and
• details of the arrangement your client would like to make, such as the first payment date, payment frequency and the amount of each payment.

The first payment date must be at least 15 working days after your phone call to allow for the processing and mailing to you of your clients’ personalised payment slips. These payment slips will then have to be forwarded to your clients to enable them to make their payments.

General interest charge
General interest charge (GIC) is imposed on any amount not paid by the due date. If we allow your client to pay the tax debt late, they are required by law to pay the GIC. The GIC is tax deductible in the income year in which it is incurred. The law also provides for remission of all or part of the GIC in limited circumstances.

Eligibility to pay by installments
Your client will usually be eligible to pay their tax debt by installments if they meet the following conditions.

• Is the outstanding debt less than $25,000? Check the portal to establish account balance.
• Is your client unable to pay the debt off in full by the due date?
• Does your client want to pay this debt in installments?
• Can the debt be paid off by installments within two years?
• Does your client have adequate funds to enter into the payment arrangement and meet any future tax obligations on time?

If the answer to all these questions is yes, then this self-help automated service could be a major benefit to your clients.

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