Successful Remission of Whopping $139,626 of Interest Charges
In February 2020, the team at Byfields successfully requested for the remission of general interest charges (GIC) totalling $139,626 on XYZ Pty Ltd’s (client’s name has been changed) integrated client account with the Australian Taxation Office (ATO) on a balance owing of over $1.05m.
We understood the cash flow impact on a small business like XYZ Pty Ltd and compiled the reasons to negotiate with the ATO for the large debt accrued which started back in December 2017 (i.e. the timeline of events including dates and amounts when XYZ Pty Ltd was meant to be paid for works done, when they became aware of likelihood of not being paid for their contracts and dates/periods or amounts of the remission request).
The GIC adds to the financial woes of a business and we know that getting interest remitted before the debt was paid in full was crucial. It has now given XYZ Pty Ltd some breathing space. Whilst it is all in a day’s job for us at Byfields, the cash flow battle for XYZ Pty Ltd is not over. Interest continues to accrue from the last remission request and it is our aim to assist XYZ Pty Ltd to request for a further remission of interest in 6 - 12 months’ time to keep the business afloat.
Here are some tips for a successful remission of interest or penalty request:
- Have a good lodgement history and ensure future lodgement of tax returns, BAS & IAS are lodged on time and, where possible, paid in full.
- Renegotiate payment plans before the due date if likely to default.
- Be specific with reasons for not being able to make payment in full.
Disclaimer: This content provides general information only, current at the time of production. Any advice in it has been prepared without taking into account your personal circumstances. You should seek professional advice before acting on any material.