When Tax Time Overwhelms, We Can Help

Background

One of AAG’s long-standing clients referred a friend to our services, as they were dealing with a number of taxation compliance issues within their small business. A young couple, the business owners had been sent a letter of demand from the ATO and were panicking – they were unsure how to move forward and were afraid for their business’ future.

When our new clients first came to AAG their overdue returns included:

1. Five income tax returns for the business;
2. 16 BAS returns outstanding; and
3. Four outstanding individual tax returns.

Our client’s reasons for failing to lodge their returns were not deceitful; they were dealing with a number of personal and business-related issues that were distracting and had impeded their ability to see the way forward – including:

• Poor business conditions – they were struggling to keep the business afloat and were worried that they would be facing a tax liability they wouldn’t be able to pay;
• Personal stresses on their relationship, largely due to financial pressures within the business; and
• A difficult personal situation, with a close family member of one business owner dealing with a terminal illness.

AAG in Action

It was clear from the first meeting that our clients required significant professional assistance and support – not just from an accountant, but from a team who could understand the fears they had for their business and personal lives, and who had the experience to expertly guide them through the process.

Not wanting to detract from the seriousness of their situation, we explained to our clients that they had two obligations to the ATO:

1. To lodge returns – and the ATO has the ability to fine for late lodgement; and
2. To pay their tax liabilities.

The first course of action was to lodge our clients’ returns, allowing us to then approach the ATO with a payment arrangement plan. The payment plan was to ensure any tax debt would be paid over a period of time that was manageable for our client, allowing them to essentially ‘set and forget’.

Through a coordinated effort of the AAG team, we collated and processed five years of tax invoices, receipts and paperwork for multiple entities, and in just three short months lodged five income tax returns for their business, 16 outstanding BAS returns and four overdue individual tax returns. We also undertook a financial ‘health check’ for our client, ensuring their financials were properly in place going into the next Financial Year and beyond.

Result

Much to our clients’ relief, the ATO accepted the proposed payment arrangement plan and our client has regained control over their tax obligations.

It was fortunate that our clients contacted AAG before their situation was escalated by the ATO, as this allowed us to be proactive and approach the ATO with a plan. We also provided the ATO with reassurance that going forward, our client would be compliant with their tax obligations. Thus, a less than desirable outcome was avoided, and our client was able to get their business and personal lives on track again.

Are you needing help with outstanding tax return lodgements, and would like professional guidance on how to move forward? contact us today for a confidential chat about the issues you’re facing and how we can assist.