The Australian Taxation Office (ATO) deputy commissioner Cheryl-Lea Field has confirmed that the ATO is targeting small to medium sized businesses with outstanding tax debts, closer than ever before.
With a lowered threshold for the minimum amount of debt required before taking action against companies, the number of liquidation applications issued by the ATO has soared. Cases have risen from around 50 in March this year to more than double in April alone.
Analysts also predict substantial increases in the number of ATO Garnishee Notices and Director Penalty Notices to be issued in the near future. These trends suggest that in the upcoming months we will see hundreds of company liquidations which may be initiated by ATO debt recovery actions.
During the GFC the ATO adopted a supportive approach to small to medium businesses, but now they have publicly announced that they will no longer be adopting a lenient approach with ATO tax debt.
If your company has an outstanding tax debt, act now before you receive a ATO Garnishee Notice or a Director Penalty Notice. Call Australian Company Liquidations today on 1800 731 155 to reach our team of licensed and registered liquidators.