If you have received a garnishee notice from the Australian Tax Office you may be feeling confused, anxious and unsure about what to do next. It’s important that you know your rights, and the options available to you, and that you act fast. At Pherrus, we’re here to support and navigate you through the next steps.
WHAT is it?
A garnishee notice is issued from the ATO as a way of collecting your tax debt. It can be sent to anyone who holds funds for you or owes you money, instructing them to pay the money directly to the ATO, without asking your permission. The garnishee notice you have received will be a copy of the notice that has been issued to this third party.
The notice may have been issued to:
- Your bank (access to your accounts)
- Your employer (access to a percentage of your wages)
- Your clients (access to money owed to you for work/services)
- A company in which you are a shareholder (access to your dividends)
- A third party who is buying a property from you (access to your equity)
WHY have I received it?
A garnishee notice is issued because the ATO believes that you have an outstanding tax debt. If this is case, you should have already received some warning notices. If, however, it has come as a complete surprise, it is worth checking the facts as soon as possible to make sure that the claim is valid.
WHAT happens now?
- Don’t delay! The sooner you act, the sooner you can get back to business as usual.
- Check that the ATO’s claim is valid. Our tax lawyers can help you to clarify this.
- Establish whether it is a “point in time” garnishee notice, requiring a one-off payment from the third party, or a standard (ongoing) notice.
- You may be able to reduce your debt by negotiating the added penalties and interest.
- If you can work out a payment plan with the ATO for clearing your tax debt within an agreed timescale, they should take no further action.
HOW can I make sure that I get the best result?
This can be a complex and intimidating process, especially if you have no experience of tax law and procedures, but getting it wrong could send your business into meltdown. At Pherrus, we want to help you navigate this path, protect your rights, and secure the best outcome for you and your business. Our team is made up of some of the most experienced business tax accountants, agents, lawyers and consultants in Sydney, with a wealth of specialist knowledge in all areas of business tax and tax law.
Get in touch today and let’s work together to formulate the best plan of action for you, so that you can get back to business with peace of mind.