ATO calls in its markers: Restructuring vs repayment plan.
The ATO is estimated to be owed around $53.8 billion – and it’s starting to call in its markers. If you’re a struggling small business with a tax debt, it’s time to take action.
You could consider an ATO repayment plan. But it has its limitations. Another option is the Small Business Restructuring Process (SBRP). It’s simplified, shorter and less regulated. It enables eligible*, financially distressed small businesses to restructure their debts while remaining in control of their business.
The benefits:
- debtor-in-possession: directors stay in control of their business during the process
- creditor moratorium: prohibits creditors, including the ATO, from taking action to recover money or property
- protection: directors are protected from being liable for insolvent trading and from personally repaying the entire company tax debt
- lower costs: the process is designed to reduce access costs for small business
- specialist practitioners: a qualified Small Business Restructure Practitioner manages the process, ensuring compliance and helping protect directors.
If you have concerns or further queries, chat to your Highview Accountant directly.
*The Small Business Restructuring Process is accessible to incorporated businesses with liabilities of less than $1 million. To be able to propose a deal the business must have paid all employee entitlements and made all tax lodgements.
Source: www.accountantsdaily.com.au