An insolvency firm referred their client, a sole trader carpenter, to Tax Assure. The client had a tax debt of $150,000 with just under $9,000 in accumulated penalties and interest.
The clients were advised by their previous accountant that their only option was to liquidate the business. This just wasn’t the case – and the liquidator could see that.
A new accountant came on board to get them compliant with their lodgements and obligations to the ATO. The business was on a trajectory to becoming viable again.
However, there was still an outstanding tax debt for the client. With no payment arrangement in place, the client was at risk of garnishee notices and DPNs.
This is where Tax Assure came in.
Tax Assure immediately obtained a halt in debt recovery action, so we could assess the situation and devise a solution.
Having understood the client’s position (including the background to the debt and their capacity for future repayments) we put together a detailed proposal and negotiated directly with the ATO.
We agreed a 36-month repayment plan, followed by a full refund of penalties and interest.
Not only was the client delighted – a workable plan, and a load off his mind – our insolvency partner was too.
As an extension of the insolvency partner’s team, our specialist expertise and knowledge meant he got the best outcome for his client. Win-win.
Tax Assure often acts as a “virtual team” with our referrer network partners; a great value-add for partners, that delivers the best possible outcome for their clients.