ATO Debt
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HOW TO NAVIGATE AND CLEAR ATO TAX DEBT
THE BIG PICTURE
YOUR SITUATION
We understand that owing money to the Australian Taxation Office (ATO) can be stressful and overwhelming. If left unmanaged, ATO debt can lead to severe penalties, director penalty notices (DPNs), corporate liquidation or personal bankruptcy.
- Do you owe the ATO?
- Do you have outstanding income tax or BAS lodgement?
- Have you received a Director Penalty Notice (DPN)?
We are here to help !
Graeme Beveridge and the CYB team can provide realistic pathways to clear your ATO debt, reduce interest and penalties and secure your business future. We analyse your situation and negotiate the best possible outcome with the ATO on your behalf.
The ATO has drastically accelerated its debt collection and enforcement. This means that leaving business tax debt unmanaged is no longer an option. We help you navigate those specific, high-risk pressures such as:
- Director Penalty Notices (DPNs): The ATO can hold company directors personally liable for unpaid PAYG, Superannuation Guarantee Charge (SGC), and GST.
- Credit Bureau Reporting: If your Tax debt is over $100,000, unless you enter into a payment arrangement with the ATO, the ATO can, and usually will, report your debt directly to major credit agencies, destroying your commercial borrowing power.
- Garnishing Orders: The ATO can legally instruct your bank or major debtors to pay your funds directly to them, instantly freezing your business cash flow.
- Compounding General Interest Charges (GIC): Interest charges accumulate quickly, turning a manageable tax obligation into an inescapable burden. Interest charged from 1 July 2025 are no longer tax deductible.
- Appointment of an Official Liquidator to the company: As a last resort the ATO will issue the relevant demands to allow it to apply to Court for the appointment of an Official Liquidator to the company.
- If you are an individual the ATO can declare you Bankrupt.
At CYB we appreciate that we will not always know the correct answer to a technical question however we have access to some of the best tax experts and we are not afraid to seek their advice.