An ATO Garnishee Notice gives the Australian Tax Office the power to collect an outstanding tax debt from companies.
The most common type of ATO Garnishee Notices will be issued directly against your bank account.
But you need to be aware that the ATO can also issue a garnishee notice against your debtors (i.e. customers who have an outstanding account with your business).
Either way, when an ATO Garnishee Notice is issued you must act immediately!
If ignored an ATO Garnishee Notice may have a serious impact on your company’s cash flow which could lead to your company being unable to meet your payroll and other business expenses.
In March 2014, the newly appointed Commissioner of Taxation (Chris Jordan), signalled a change in the ATO’s approach with collecting large tax debts from companies. It will no longer wait until a corporate tax debt exceeds $340,000 before initiating debt recovery procedures (such as a garnishee notice or winding up proceedings). The ATO will now intervene earlier and will not allow debts to escalate out of control.
Don’t allow your company tax debt to escalate out of control! You will achieve the best outcome if you take action early, so call us now on our 24 hour toll free insolvency hotline.
For more information and free advice on ATO Garnishee Notices or a Company Liquidation call ACL today on 1800 731 155.