What if you can not pay your tax debt on time?

For more details on paying your tax debt visit our site here.

If you cannot pay your tax debt on time, we recommend you contact the ATO at your earliest convenience to discuss your circumstances.

When you speak to an operator about payment of your outstanding tax debt or remission of general interest charge (GIC), the ATO is committed to:

n understanding your situation and individual circumstances
n being fair and equitable in the application of the law, processes and policy
n considering your case on its merits and assisting you to move on, and
n assisting you where possible if you are attempting to engage with the Tax Office and do the right thing.

In some circumstances, you may need to provide written details of your financial position, including a statement of your assets and liabilities, and details of your income and expenditure.

The ATO will also need to understand what steps you have taken to obtain funds to pay your tax debt, as well as what you have done to make sure you meet future tax debts on time.

They may give you extra time to pay, depending on your individual circumstances.

If you are given extra time to pay, you are required by law to pay the GIC. The GIC is tax deductible in the income year in which it is incurred. The law provides the Commissioner with the opportunity to remit all or part of the GIC in certain circumstances. Applications must be made in writing.

By D Maynard CEO
My Tax Zone

Copyright 2014. My Tax Zone.