If you put your phone number on the new "do not call list", will that keep the ATO off your back? Sadly, I don't think so. This week the Sydney Morning Herald revealed that the ATO will be engaging private debt collectors to chase small business debts - including GST and superannuation. (Front page of Tuesday's SMH: "Behind on tax? Debt Collectors will be after you"). I seem to recall a year or so ago that the ATO was going to be undertaking a telephone collections campaign - but perhaps then it was making the calls itself. This time around private debt collectors will be using SMS, emails and evening phone calls to do the work.
View the article by following this link: http://www.smh.com.au/news/national/behind-on-tax-debt-collectors-will-be-after-you/2007/05/28/1180205163450.html
Once again, there is talk of the ATO spending millions to chase billions.
Interestingly, the ATO announced only two weeks ago the signing of a new memorandum of understanding with ASIC, the purpose of which is "to strengthen our impact in ensuring revenue is collected effectively" (see the press release here http://www.ato.gov.au/corporate/content.asp?doc=/content/00099116.htm).
So, what are the implications for small business cash flow? Will Australia's most popular lender of last resort (the tax office) at last be closed for business? If you are a finance broker, have you been seeing an increase in activity from small business clients looking to refinance tax debt? Can restructuring professionals (accountants and lawyers included) now expect to see an increase in work load? What sort of pressure will accountants now come under from their clients? Share your thoughts by making a post here today. Click on "comments" below to do so.
The Cash Flow Ninjas
