Small and medium enterprises (SME’s) with tax debts owed to the Australian Tax Office are likely to start feeling pressure to repay those debts by now. The ATO is expected to start ramping up actions to get those debts repaid. Debts to the ATO mounted up to $35.3 billion in the 2013-14 period and that was a 9.7 percent increase over the previous year. Because that amount is growing so fast and is so large, the ATO is going to have to start increasing their collection efforts and SME’s should be warned.
The debt amount has grown so large that the ATO will probably make the penalties for late debt repayments much stricter in the future. The ATO will hope that the tougher penalties on late debt repayments will motivate SME’s to pay their debts on time.
SME’s often have the capital to pay their debts to the ATO but have not managed their working capital properly. Those SME’s that have delayed making their debt payments have likely been making the short term decision to use their capital in their business instead of paying their debts.
Delaying paying debts to the ATO can get an SME on a dangerous path that can lead to severe penalties from the ATO. There are ways for SME’s to get the capital to pay their debts and keep their businesses running.
Tax Help for SME’s
There are bank and non-bank lenders that make loans available for tax help. Tax help loans are common and can be had at reasonable rates. A business just needs to apply.
Tax help loans from non-bank lenders are often easier to get and are less strict. SME’s should do everything they can to avoid having the ATO come after their assets to pay off their debts. In order to pay off the debts to the ATO a bank or non-bank loan can be taken to pay off the debt. This will allow the business to stay open and profitable while paying off the loan.
If your business has debts with the ATO then you should take action now. Tax help loans are affordable and available. It is much easier to pay off a loan to a bank or non-bank lender than dealing directly with the ATO. Reach out to a non-bank lender like the Australian Lending Centre to see how we can help you with your tax debts.