ATO’s New Focus on Unpaid Taxes and Super: What Businesses Need to Know
The ATO is stepping up its enforcement efforts on unpaid taxes and superannuation, particularly targeting businesses that fail to engage despite repeated reminders via SMS and letters. Here’s what you need to know:
- Increased ATO Action on Unpaid GST, PAYG Withholding, and Super: Businesses that continue to ignore the ATO’s outreach and do not establish a payment plan for outstanding GST, PAYG withholding, or employee superannuation contributions may face more immediate enforcement measures. The ATO is now moving more swiftly to issue Director Penalty Notices (DPNs) and apply garnishee orders on accounts to recover these amounts.
- Directors of Multiple Entities at Higher Risk: Directors responsible for several companies should be aware that the ATO is taking a more comprehensive view of unpaid debts across all related entities. If unpaid GST, PAYG withholding, and super are allowed to accumulate across multiple businesses, directors could receive DPNs that reflect the total amount owed across all these companies. Failure to respond promptly can result in the ATO recovering these amounts directly from directors, potentially putting their personal assets in jeopardy.
If your business is behind on any tax or super payments, it is crucial to engage with the ATO as soon as possible and set up a payment plan. Proactive engagement can prevent harsher enforcement actions, protecting both your business and personal assets.