When people are facing bankruptcy, the most important asset unsurprisingly, is the family home. Now the forced sale of a family home can

Our Case Study this month looks at the changes in credit reporting in Australia, and the impact that this had on our client, Allan. These changes have been rapid, and we are just now starting to see firsthand the real-life impact this can have on businesses and individuals. The Changes In September 2019 Australia moved to Comprehensive Credit Reporting (CCR). In the past the system was based on negative reporting, meaning whether you had defaults or judgments on your credit r

This month’s case study looks at the ATO’s ability to issue Garnishee Notices. Garnishees can be powerful and should be taken very seriously. Don’t underestimate the power of the ATO’s garnishee capabilities, even if their initial actions are unsuccessful. In this case the ATO continued to escalate their recovery actions by the use of Garnishees. So, something that was not that big a deal to the client soon turned into a massive problem. Background Our client operated an

This month’s case study looks at the importance of identifying warning signs and how quickly things can change. This case involves a situation with the ATO, where events quickly spun out of the director’s control, and how getting professional advice quickly can make a massive difference. Background We received a call from an accountant who attended an instalment in our de Jonge Read Seminar Series. The accountant’s client operated a small transport business through a company,

Well, it’s coming to that time again. The end of the financial year. Over the coming months many accountants and professional advisors will be meeting with their clients, and perhaps talking to those business owners that have not paid much attention to the numbers since the same time twelve months ago. Maybe the meeting will be with that new client who they just brought on. As specialists in assisting company directors and individuals in financial distress we often get ask

Our latest case study looks at how we devised a strategy to manage the liquidation of a company with an insurmountable director loan (Division 7A loan). The ramifications of this liquidation resulted in a large tax debt from the company being attached to our client personally which caused further issues. This is how we brought finality to the issues. BACKGROUND We were approached by a client who ran a business in property sales and development. The company had an insurmountab

Page 37 of the Budget Measures, Budget Paper No. 2, 2018-19: The Government will reform the corporations and tax laws and provide the regulators with additional tools to assist them to deter and disrupt illegal phoenix activity. The package includes reforms to: introduce new phoenix offences to target those who conduct or facilitate illegal phoenixing; prevent directors improperly backdating resignations to avoid liability or prosecution; limit the ability of directors to res

There is no doubt that the ATO is continuing to develop and refine their debt collection processes. In recent times we have seen the ATO more diligently apply the tools at their disposal to recover debts owed. The information below is from our observations over the past six months. We have all seen clients receive a demand letter from the ATO. The one with the big red letters at the top. In the past it was not uncommon for the ATO to issue this sort of demand, but then take l

In a recent article on Smart Company, it was reported that although small businesses are ‘doing it tough’, the Australian Tax Office is continuing its aggressive pursuit of businesses. From November 2016 to June 2017, 46% of all wind-up order applications for companies came from the ATO. Although the number of ATO instigated wind-ups are down from when they started their campaign to recover revenue owing to the government, there is no doubt that the ATO is maintaining its agg

BACKGROUND ​ Recently, a client was referred to de Jonge Read by his accountant. He operated a sole-trader business in the mining services industry and had a history of noncompliance with the ATO which resulted in a sizeable debt being accrued. This debt position was approximately $700k which included substantial interest and penalties. Our client had a family member who was prepared to assist with a loan of $80k to settle the debt. ​ The accountant had tried negotiating wit

Of late, we are seeing the ATO becoming more savvy in relation to the insolvency framework and using this knowledge in their collection methods. This case study shows how the ATO have used a garnishee notice to attempt to collect the majority of funds from a business going through a controlled exit. ​ BACKGROUND Our client was a regional Victorian manufacturing company that had been experiencing considerable cashflow issues for quite some time. The director had been contribut

We believe everyone understands the importance of making sure the address for the company’s registered office is correct on ASIC records. Often the job of making sure this is right is left to the Accountant, and more often than not the registered office is the Accountant’s address. After all, this address is where the ATO will send demands for payment. ​ What may be less well understood is the importance of making sure the Director’s address is also correct. It is quite possi