Company ATO & Superannuation Debt

Corporate Rescue has the expertise and experience to negotiate with the Australian Tax Office (ATO). This experience enables Corporate Rescue to assist in minimising the risk of a wind-up application or garnishee notice being issued to a company.

The ATO states: “We will take action to wind up a company if it has failed to pay its debts and we have not been able to make a suitable payment arrangement. These circumstances may indicate that the company is insolvent and there could be a risk to us (and possibly to other creditors) that the debt will not be paid if the company is allowed to continue trading.”

The best way to manage your tax debt is with open and honest discussions with the ATO to negotiate a manageable repayment plan. Corporate Rescue can assist in this process with your communication and proposal to the ATO.

Corporate Rescue can assist and advise in facilitating a negotiation even in the case where a wind-up application has been issued by the ATO, as in some instances this application can be withdrawn or adjourned.

If a formal appointment is necessary Corporate Rescue can provide advice on what option and solution is most suitable to companies that have ATO debt comprising tax (PAYG and GST) and/or superannuation debt (SGC).

NOTE: In the case a director penalty notice (DPN) is issued to the director/directors for unpaid PAYG and Superannuation this becomes a personal debt issue and is covered in the Personal Debt information section.

These options can vary depending on the specific circumstances that are applicable to each individual situation. The different types of formal solutions we utilise include:

A voluntary administration provides a flexible procedure, enabling a company time to compromise an arrangement with its creditors, which may save the company, the business and jobs while maximising the return to creditors. A voluntary administration:

• Provides a company with breathing space to deal with creditors in an orderly manner and prepare a proposal (Deed of Company Arrangement) to give the best return to stakeholders
• It allows an independent party to review the company’s affairs and deal with the pressures of creditors
• Reduce the possibility of secured creditor proceedings against the assets of the company
• It may allow the company to stay out of liquidation

If the voluntary administration attempt fails, the legislation facilitates the winding-up of the company.

We will assist in the appointment and initial brief to the administrator to assist in your specific circumstance.

A creditors voluntary liquidation (CVL) occurs when the company’s members determine that the company can no longer satisfy its debts and is insolvent, or likely to become insolvent.

It allows for an orderly realisation of the company’s assets, investigations into the company’s failure and distribution the company’s assets amongst creditors by a Liquidator.

The CVL process allows for a systematic approach to winding up a company and bringing its affairs to an end. The Liquidator acts as an independent third party to ensure that the process is conducted appropriately and accordingly to the relevant law.

We will assist in the appointment and initial brief to the liquidator to assist in your specific circumstance.

NOTE: IN THE CASE A WIND-UP APPLICATION HAS BEEN ISSUED A CVL APPOINTMENT IS NOT AN OPTION