ATO's debt recovery action against small businesses is 'crippling', says ombudsman

  • 📰 abcnews
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 83%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

Debt recovery action initiated by the Australian Taxation Office against small firms is having a crippling impact on many of them, according to the small business ombudsman.

This includes garnishee notices, which allow the ATO to demand money from taxpayer's bank account, or another third party.

The garnishee notice required the clients to withhold and remit to the ATO 50 per cent of any progress claims payable to the company. It enabled the clients to terminate the contracts meaning that the company had no choice but to cease operations and collapse into liquidation, resulting in the termination of 90 employees.Ombudsman Kate Carnell has called for the ATO to immediately cease debt recovery action against any small business with a dispute before the AAT.

"ATO garnishee notices must be actioned only with appropriate oversight and approval, such as the court system, before an order can be issued," she recommended. The ASBFEO's initial research was limited to historical AAT cases, mostly over the past year, but it said"the same stronger forms of ATO debt recovery actions are applied well before any AAT appeal has commenced, thereby impacting small businesses to a far greater degree".In its written response to the ombudsman the ATO said, of Australia's 3.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Another absolutely disgraceful abuse of power by this LNP govt

Lets see the same due diligence in recovering unpaid superannuation that business owners steal from their employees. Business is not just knowing about how to make money, its also about ethics, honesty and paying your way.

It'll only get worse under Labor. They'll move for more cash grabs from the easiest targets. auspol AusVotes2019

qwadja People on welfare are experiencing the same after receiving a robodebt Maybe KateCarnell can also urge the government to exercise restraint when considering debt recovery or in robodebt's case, trying to bully welfare recipients into contributing money to boost the surplus

I watched a doco a few years ago,it was a meeting with a large corporation over tax debt.They owed about 14M,they disagreed. So it was cheaper to accept the corporate amount of 50%,than fight them in court,so they only paid 7M.All over in 30 minutes.

And some small businesses are ripping off workers not paying superannuation and pocketing PAYG Payment’s especially in the cafe and restaurant industry. Employees shouldn’t have to tolerate that

Well, if small businesses became big businesses they wouldn’t have to worry about tax.

Yes! Give small business a break. They work hard, employ people, pay loads of tax, and often get strung out on payments by bigger business and that hurts their cash flow and in turn makes it difficult to meet tax obligations on time, then get penalised by ATO.

They'd never try it on with the big end of town

If you want to know how to get to a surplus, just raid everyone’s bank accounts.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Thai sex worker testifies at slave trial of Sydney womanA second Thai sex worker has told a jury of taking months to pay off a $45,000 debt by handing over all her brothel earnings to a Sydney woman accused of 'possessing her' as a slave. lucky you could earn money Imagine that, modern day slavery in Australia allegedly run by a woman! Where Gillette when you need them? Imagine that, modern day slavery in Australia allegedly run by a woman! Where’s Gillette when you need them?
Source: smh - 🏆 6. / 80 Read more »

'Real need' for Small Business Fund: Ombudsman | Sky News AustraliaFULL INTERVIEW: Australian Small Business Ombudsman Kate Carnell says a business growth fund could help 'small businesses grow exponentially.'\n\nPrime Minister Scott Morrison has pledged $100 million to help small and family business, in a funding promise the party hopes will firm up votes in South Australia.\n\nMr Morrison told Sky News the growth fund, which was announced on Tuesday, is part of the biggest equity investment in small and family businesses ‘ever seen in government’.\n\nMs Carnell told Sky News that if overseas equivalents are any indication, the government's strategy will 'turn a profit' and help smaller companies thrive.\n\nShe says she also hopes Labor 'comes to the party' and endorse this plan. KateCarnellAus LiberalAus AustralianLabor 🤔🦄💩 Kate 🤦🏻‍♂️ KateCarnellAus LiberalAus AustralianLabor Kate ( former Liberal politician) would say that, wouldn’t she? KateCarnellAus LiberalAus AustralianLabor Kate, enormous respect for ASBFEO. Let's leave pork barreling and pollies lies till AFTER they deliver?
Source: SkyNewsAust - 🏆 7. / 78 Read more »

Small business will be the victim of Shorten's penalty rates promise | Sky News AustraliaSky News host Peta Credlin says the 'main victims' of Bill Shorten's promise to reverse cuts to penalty rates 'will be small businesses and their staff'.\n\nThe Opposition Leader has vowed to reverse cuts to penalty rates within Labor's first 100 days in office if he's elected in May, as well as put in legislation to prevent the decision from being overturned. \n\nMs Credlin explains how the decisions on penalty rates are handed down by the 'independent industrial umpire', called Fair Work Australia, which was originally set up by Labor.\n\nShe is urging voters to 'beware the Labor scare campaign' on penalty rates, 'particularly when they're at odds with their own independent umpire'.\n\nImage: News Corp Australia\n\n\n\n\n The victims are the employees who have had wages cut. Businesses that open on weekends either pay properly or shut shop. Penalty rates have been paid for years and small businesses still survived. Oh, if you put a surcharge up I will walk straight out. You pay the penalties not ! My wife owned in small business several years ago, after penalty rates her two employees made more than she did. She finally put off her girls and closed the business. Small family businesses can have family work weekends and staff on weekdays. No penalty rates needed, simple solution.
Source: SkyNewsAust - 🏆 7. / 78 Read more »

Radio boss accused of ripping off small businesses promises 'fix'A businessman and radio presenter has been accused of allegedly ripping off a number of struggling small business owners.
Source: 9NewsAUS - 🏆 10. / 72 Read more »

Labor pledges to increase skilled migration income threshold, Coalition to help small businessThe Federal Opposition promises to replace a controversial northern infrastructure fund, and to overhaul Australia's temporary skilled migration system, if it wins the election. Why don't we teach skills to the migrants that have already made it here? Or once they are here is it they become just another Australian and f%ck em they can work it out for themselves?
Source: abcnews - 🏆 5. / 83 Read more »

Coalition to pledge $100m to small and family business | Sky News AustraliaThe Prime Minister is set to unveil a $100 million package to support small and family businesses, with a view to grow the fund into a $1 billion entity.\n\nScott Morrison’s government will commit to creating 250,000 new small and family businesses over the next five years if returned to power.\n\nMr Morrison will make the announcement on Tuesday as he hits the campaign trail in Adelaide.\n\n\n\n\n\n\n\n\n\n Good do I get that cuppa as well. I am so sick of business being propped up while the poor are homeless Corporate Socialism? Instead capitalism should work like this,.. workers have a living wage, and time, leisure to spend money in the economy (Customers). Small businesses then just need regulation to ensure competition is fair and big business does not unfairly squeeze them
Source: SkyNewsAust - 🏆 7. / 78 Read more »

Coalition to pledge $100m to small and family business | Sky News AustraliaThe Prime Minister is set to unveil a $100 million package to support small and family businesses, with a view to grow the fund into a $1 billion entity.\n\nScott Morrison’s government will commit to creating 250,000 new small and family businesses over the next five years if returned to power.\n\nMr Morrison will make the announcement on Tuesday as he hits the campaign trail in Adelaide.\n\n\n\n\n\n\n\n\n\n ScottMorrisonMP And remove family trusts hey billshortenmp ScottMorrisonMP JUDGE A GOV ON ITS RECORD - NOT ITS PROMISES For 6 years they have suppressed wages. Do you really think they will change? Put Australians first - Put the LNP last AusVotes2019 ScottMorrisonMP Both parties, (were gonna do this, were gonna do that). Why hasn't it been done already?
Source: SkyNewsAust - 🏆 7. / 78 Read more »

Coalition pledges $100 million for small, family business | Sky News AustraliaPrime Minister Scott Morrison has pledged $100 million to help small and family business, in a funding promise the party hopes will firm up votes in South Australia. \n\nMr Morrison told Sky News the $100 million business growth fund, which was announced on Tuesday, is part of the biggest equity investment in small and family businesses ‘ever seen in government’. \n\nThe Coalition is continuing its jobs pitch in South Australia, where the party is at risk of losing a number of marginally held seats. \n\nImage: News Corp Australia \n\n\n johnjowardpm billshortenmp Desperate times You have used a fake profile for Mr Howard 🤔🤨 johnjowardpm billshortenmp johnjowardpm billshortenmp Hey, they've hauled the rodent out of mothballs. Little Johnny can rest assured that Morrison will be inheriting his tradition of blatant lies and outright racism. Deploying this worthless hack is always a sign that things aren't looking good. auspol ausvotes2019
Source: SkyNewsAust - 🏆 7. / 78 Read more »

Mixed response from banks to PM's $1b small business pledgeTwo of the nation's biggest banks and the largest super funds have rebuffed Prime Minister Scott Morrison's pledge of a $1 billion small business growth fund. 😂 the chaos continues.... Seeya later banks and hello cryptocurrency! ✊🏼 Power back to the people XRP RIPPLE itshappening
Source: smh - 🏆 6. / 80 Read more »