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A collection of updates, articles and papers written by The Little CFO & The Little CFO Legal

ATO to take firmer action: expect a rise in insolvencies.

The ATO highlighted in a recent media release that it expects a number of insolvencies to occur over the coming months and that it will continue with firmer action for certain taxpayers who are failing to engage.

The ATO Deputy Commissioner Vivek Chaudhary highlighted that "What is critical is that taxpayers or their representatives talk to us and respond to our calls.” In particular, the ATO will be focussing on those taxpayers who have not responded to calls and letters, have significant tax obligations outstanding, have any super guarantee debts, and are not engaging with the tax office. The ATO is already proceeding with issuing 'Director Penalty Notices' and 'Intent to Disclose Notice' for business tax debts.

The numbers as of May 2022

Intent to disclose business tax debts
  • The ATO has issued nearly 300 intent to disclose notices and has commenced disclosing some of these to Credit Reporting Bureaus Equifax and Creditor Watch.

  • The ATO sent 29,552 awareness letters for disclosure of business tax debts.

Director Penalty Notices
  • The ATO is currently issuing 30–40 Director Penalty Notices each day for companies with outstanding obligations, and expects that to increase.

  • The ATO sent 52,319 awareness letters about the use of Director Penalty Notices.

Read the full ATO media release here.


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