Take Control of Your Situation and Secure Your Peace of Mind
Don't let a tax debt dispute continue to cause you stress.
Let us help you take control of your project and provide you with a clear path forward.
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Take Control of Your Situation
As litigation lawyers, we understand how deeply a legal dispute, particularly a tax debt dispute, can affect you—not just financially, but emotionally and personally. The stress often spills over into other parts of your life—your business, your relationships, and even your health.
Tax debts are difficult to defend due to the ‘conclusive evidence rule’, which essentially says that if the ATO does an assessment and it says you owe $150,000.00, then you owe $150,000.00 and it is up to you do demonstrate that you do not.
This is where the guidance of an experienced litigation lawyer becomes invaluable to provide you with a clear path forward and to allow you to take control of your situation.
At Odyssey Legal, our team has over a decade of experience and have resolved various tax debt disputes. Whether you are wanting to negotiate a payment plan (or other early resolution with the ATO) or want to contest the debt, you can rest assured knowing you have the right partner in your corner.
Don't leave the dispute to chance; let us help you take control of the situation, allowing you to obtain peace of mind and to focus on the more important things.
Frequently Asked Questions
How does the ATO deal with Tax Debts?
To enforce the payment of the tax debt, the ATO may:
1. Contact you to discuss and arrange a payment proposal or encourage you to do so;
2. Issue a letter of demand;
3. Issue a director penalty notices;
4. Commence legal proceedings;
5. Issue a statutory demand and commence winding up proceedings; or
6. Issue a bankruptcy notice and commence bankruptcy proceedings.
Avenues for Early Resolution of Debt?
Avenues available to you to resolve the dispute with the ATO, prior to the ATO taking enforcement action against you, include (without limitation):
1. Deferral of Payment Request;
2. Remission Request; and
3. Request for a Payment Plan.
Are there Defences to a Tax Debt?
Yes, under the Taxation Administration Act 1953 (Cth), the two (2) main defences for a director are:
1. Illness - Being that because of illness or for some other good reason, it would have been unreasonable to expect you to take part, and you did not take part, in the management of the company at any time you were a director, and the company incurred the liability; or
2. All Reasonable Steps - Being that you took all reasonable steps to cause the company to comply with their obligations or acted proactively upon becoming aware that the company could not comply, including placing the company in administration or liquidation or causing a small business restructuring practitioner to be appointed.
Can I deal with the Dispute myself?
Absolutely!
If it is your intention to enter a payment plan with the ATO (or other early resolution) and the debt is under $200,000.00, then this can simply be done by contacting the ATO (or through MyGov).
However, depending on your circumstances and the debt, negotiations may not be straightforward and may require legal intervention to appropriately put forward your position to allow the ATO to consider your requests.
Additionally, challenging an ATO debt is complex, and it is recommended, that if you intend to defend proceedings, a statutory demand or an ATO debt, then you should obtain legal advice.