ATO provides assistance to small businesses with tax debts
With over a quarter of all small businesses carrying a tax debt, the Australian Taxation Office (ATO) has introduced new measures to help those experiencing difficulties.
Businesses with an annual turnover of less than $2 million and an activity statement debt will be offered a 12 month general interest charge (GIC) free payment arrangement and have the payment date for activity statements deferred, tax commissioner Michael D’Ascenzo explained in a speech to the Council of Small Business of Australia.
D’Ascenzo said there was a need to differentiate those businesses likely to remain viable if given reasonable latitude from those unlikely to survive the downturn.
“We don’t want the GIC or temporary cash flow problems to be the deciding factors between a business surviving and being able to meet its tax and superannuation obligations or becoming insolvent,” D’Ascenzo said.
However, D’Ascenzo advised that the new measures would not disadvantage the majority of businesses that are keeping on top of tax responsibilities.
“We will continue to balance support for struggling businesses with our ongoing efforts to ensure a level playing field,” D’Ascenzo said.
According to the National Institute of Accountants chief executive Andrew Conway, there are around 1.9 million small businesses, which contribute around 30 per cent of Australia's economic activity.
"This makes them an integral part of our economy," Conway said.
Recommended for you
New York-based firm CC Capital has bumped up its offer to stay ahead of rival bidder Bain Capital.
In a tight race against Morgans, AMP Financial Planning has won back its position as the largest individual licensee in Australia, according to Wealth Data.
Learning to delegate authority and relinquish a hands-on approach is a critical step towards building a self-sustaining financial advice practice, says Assured Support.
Private wealth management company Stellan Capital has appointed a new chief executive, who brings over three decades of experience in the global financial services industry.
