Negotiating and Resolving ATO Debt
As part of the government backing up a small business, if you have ATO debt that has accumulated due to COVID-19 or due to having less cashflow you need to seek immediate help before you continue to trade insolvent and risk the liabilities to be paid personally.
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WRITING OFF ATO DEBT
We Help Small Business who are trapped by High business Debts stopping you from Growing your business.
It can be difficult to see the light when you’re dealing with financial problems and stress. The road to recovery can seem long, daunting and taxing, but it doesn’t need to be.
At Oyster Hub we’re experts at helping businesses that are facing financial stress. We understand that every business is different and that your situation is unique.
In order for you to qualify for the Small Business Tax Restructuring you need:
- All ATO Lodgement Upto to date
- ATO Debt under $1m
- All Superannuation Debt has been PAID
- Have a business advisory or an accountant
- Have a business viability, cashflow forecast
- Work With Us
How does it work to resolve ATO Tax Debt by negotiating with the tax office.
We have helped small business owners across Australia to negotiate ATo tax debt to give the business a chance to survive from financial pressure.
Step 1
Free debt analysis
Complete our debt analysis and to see if you qualify for assistance. It takes about 30 minutes; all information will be treated confidentially and will not be shared with anyone. The analysis will not impact your credit score.
Step 2
Free initial phone consultation
We will listen to you, discuss your situation and provide you with all the options that may resolve your debt, including the benefits, consequences and cost of each option. It is a confidential and free process without obligation.
Step 3
You make the decision
We aim to ensure you are fully informed. It is then up to you to decide what you want to do. We will make sure the debt solution you choose is affordable and provides you with real long term benefit.
Avoid Further Financial Pressure due to ATO Tax Debt Services and seek Help to Negiostate on your behalf.
If you are getting pressured by the ATO and have received a letter of demand, garnishee notice, director’s penalty notice or bankruptcy notice from ATO act now and save your business from forced closure. Our expert tax accountants have helped many small businesses struggling with ATO payment plan and can help you manage your tax debt payment plan and represent your case to ATO and save your livelihood … your business.
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Small Business Simplified Tax Restructuring for Companies
To be eligible for the simplified debt restructuring process, your business must meet these key requirements:
- Be incorporated with less than $1 million in liabilities (provable debts per s553 and excluding employee entitlements);
- Be either insolvent or likely to become insolvent at some future time*;
- Be up to date with the payment of employee entitlements; and
- Be up to date with all tax lodgements (not necessarily tax debt).
Your business and its directors (including former directors from the past 12 months) can’t have gone through either a simplified liquidation or the small business restructuring process in the last seven years (some exceptions apply to this).
Not be under other restructuring or administration including a Deed of Company Arrangement or liquidation.
* Insolvent means your business is unable to pay its debts as and when they are due.
To implement simplified debt restructuring in your business, you must first contact a registered liquidator. Only registered liquidators can act as a “Small Business Restructuring Practitioner” and advise you on simplified debt restructuring.
The simplified debt restructuring process generally follows these steps:
- Directors agree the company is insolvent or may soon be insolvent.
- Board meeting to confirm the appointment of a Small Business Restructuring Practitioner.
- Work with the practitioner to prepare a restructuring plan within 20 business days.
- Finalise and propose the restructuring plan to creditors.
- Creditors have 15 business days to vote to approve or reject the plan.
Throughout the process, the directors remain in control of the business and continue trading while putting the plan into action.
During the process, the business is afforded some protection from being forced into liquidation by creditors. Some secured creditors can still take enforcement action against the business though, so it’s important to discuss this with your registered liquidator before you decide on the best way forward.
The Small Business Restructuring Practitioner must be kept up to date on how the business is tracking — and the company’s books made available to them at any time, if they need them. If the plan is ultimately approved (you need 50 per cent support based on the “value” of the “affected creditor” debts), then the practitioner will be responsible for disbursing payments to creditors as per the terms in the approved restructuring plan.
One key concern with the Small Business Restructuring process versus voluntary administration is that your practitioner is not liable for debts incurred while you trade on. Creditors know this — so while they may approve your restructuring plan, they may not be inclined to continue supplying your company with the goods or services you need to remain operational.
If the plan is not approved, directors need to discuss other options with the practitioner, such as voluntary administration or liquidation.
The debt restructuring plan includes all current unsecured debt that your company is liable for (including shortfalls to partly secured creditors and participating secured creditor debts).
It does not include employee payments (wages, superannuation, and so on), which is why these must be paid for before the restructuring plan can commence.
If you incur new debt during the simplified debt restructuring process, this needs to be repaid outside of the restructuring plan.
As part of the terms of the plan, all creditors rank equally and are repaid at the same time. If the company cannot make its payments, the plan is exited and the practitioner will work with you to determine next steps.
Once you enter the process:
• the company stays in control of the process,
and may undertake transactions that are in
the ordinary course of business;
• the company develops a debt restructuring
plan and a restructuring proposal statement
which is put to creditors for a vote; and
• the company is assisted in this process by its
small business restructuring practitioner.