Corporation financial managers from all tiers appreciate the importance of managing their corporate tax debt. But even the best corporations and companies can get into strife with the Australian Taxation Office (ATO) over their tax debt and need the advice and expertise offered by Tax Negotiators.
Procrastination only worsens the problem, so if you’re struggling with corporate tax debt, take your power back and call us at Tax Negotiators so we can help you relax and continue operating your company. Our experts at Tax Negotiators know the corporate tax rate and rules and have strategies around capital gains tax, income tax, equity and assessable income, interest income, dividend income, aggregated turnover and profit, plus much more.
Tax Negotiators experts can negotiate a financial arrangement for the payment of your corporate tax debt on behalf of your business.
Consequences of Corporate Tax Debt
The COVID-19 Pandemic had an impact on most companies, corporations, and small businesses alike in Australia. Many companies are still struggling with ATO tax obligations and business debt for those income years as they try to keep their shareholders happy. While the ATO generally eased off on collecting tax debt payable in those income years, it has now ramped up its tax debt collection and is actively chasing up billions of dollars in outstanding tax debts from small business entities, companies and corporations.
This has left many companies skating at the edge of bankruptcy or corporate tax avoidance with debt costs piled up high and dreading the consequences, such as the ATO reporting their corporation’s tax debt to credit reporting bureaus. If this is you, we urge you to seek out options such as getting in touch with us at Tax negotiators so we can negotiate with the ATO on behalf of your company to sort out your repayment options. Our experts can help you deal with the consequences of corporate tax debt, so don’t delay.
How to Prevent or Reduce Corporate Tax Debt
Corporations and businesses of any size will end up with a tax debt that they will need to manage, but that’s the secret, knowing how to manage, prevent or reduce it. At Tax Negotiators, we can help you do this and to understand corporate debt refinancing tax implications and corporate tax credits in reducing your tax debt.
Tax credits can reduce your tax, but what is a corporate tax credit? There are three basic types of corporate tax credits:
- Nonrefundable: A nonrefundable tax credit can reduce the tax your corporation owes to nil, but there will be no tax refund.
- Refundable: Refundable tax credits benefit your company since they are paid out in full.
- Partially refundable: Part of your credits are refundable.
Good corporate housekeeping is one way to stay on top of tax debt and this means paying the debt before it is due so you don’t accrue hefty interest. Understanding what deductions you can make, what equipment to purchase and how to invest in operations can help reduce your tax liability.
What to Do If You’re Struggling to Pay Your Corporate Taxes
The very first thing you must do if the ATO is about to report your corporate tax debt to a credit reporting agency is to reach out to Tax Negotiators so our experts can engage with the ATO on your behalf and sort out your problem. If your company is engaging with the ATO to resolve your corporation tax debts, the ATO will not report your business to the credit reporting agencies.
We are experts at negotiating with the ATO and setting up workable payment plans to give you time to get on top of your corporation tax and bad debt problem. We can even negotiate to reduce your debts and interest and create affordable payment plans to deal with your debts.
Get Expert Help to Repay Corporate Tax Debt
Corporate taxpayers who face an uphill battle to meet their ATO obligations are encouraged to contact our professionals at Tax Negotiators to discuss their circumstances so we can speak with the ATO to find the most appropriate way to help them repay or reduce the debt.
The ATO knows that companies may have cash flow issues at times which means they cannot pay their tax debt in total on time. could mean they can’t pay their whole tax bill on time. Some corporations may be eligible for an interest-free payment plan and those with corporate tax debt under $100,000 may be successful in negotiating a payment plan.