Fake tax agent scam alert

Yet another ATO scam we are being warned about by the ATO. This time the ATO are reporting an impersonation scam where people are contacted by someone from the ATO demanding payment of a ‘debt’.

In these scams, the person pretending to be from the ATO says they have dialled the victim’s tax agent into a three-way teleconference; however, it isn’t the victim’s tax agent, but instead it is someone pretending to be from the agent’s practice. The person then instructed the victim to pay the ‘debt’ on that day, and via bitcoin.

The ATO reports that during July and August it received more than 7000 scam reports to its dedicated phone line, with close to $190,000 being paid to scammers, and more than 1600 people handing over their personal or financial information.

The ATO will issue payment demand notices for outstanding debts so be wary of any such phone calls. The ATO will never ask you to pay your debts via bitcoin or gift cards that’s for sure!

If you receive suspicious calls please let us know as soon as possible so we can report them to the ATO.

Click here to access previous scams the ATO has identified.

in News / Personal Tax Returns / Running A Business  by Emily Yip

ATO & Director Penalty Notices

With the recent collapse of some high profile businesses, it is a good time to review the personal obligations that can fall on a company director to pay certain tax debts of the business.

Director Penalty Notices:

When a company fails to pay the superannuation contributions for its employees or the PAYG withheld from its employees’ wages, the ATO can recover those debts from the company directors personally.   They do this by issuing a Director Penalty Notice (DPN).  A DPN outlines the unpaid amounts and if there are any options to have the penalty remitted.

 

Directors receiving a DPN have only 21 days to pay the debt or to apply for remission by putting the business into the hands of an Administrator or by commencing to wind up the company.

 

If the PAYG withholding tax or super contributions have not been reported to the ATO within 3 months of the original due date, then there is no option for remission and the Director must either pay the debt or the ATO will initiate legal proceeding to recover the debt.

Directors take note:

When a business is experiencing financial trouble, it is often seen as a better option to ignore lodging BAS returns as the amount of ATO debt will just become larger.   However, by doing this, a Director can put their own personal assets at greater risk if they become no longer eligible for remission by acting to put the business into Administration.

 

If you feel that this may apply to you or to your business, it is best to seek help before the ATO act.  We can assist you with your lodgements to keep you up to date and help you manage your cashflow.

 

Contact Us

 

More information can be found on the ATO website

 

in News / Running A Business / Starting a New Business / Tax Advice and Planning  by Melissa de Largie