What happens if I get the BAS in on time but I can’t pay the debt to the ATO?

Australian Taxation Office
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If you get the BAS in on time but can’t pay the debt, there is some good news – the ATO (Australian Tax Office) has reminded small business they can apply for a General Interest Charge (GIC) holiday.
You may be eligible for a GIC-Holiday arrangement if your business:
1. has an annual turnover of less than $2 million;
2. has a recent activity statement debt of $50,000 or less, which has been outstanding for no longer than 12 months;
3. has a good payment and lodgement compliance history, including;
1. no more than one payment arrangement default within the last 12 months;
2. no outstanding activity statement lodgements;
4. is unable to obtain short-term finance through normal business channels;
5. is able to demonstrate ongoing viability; and
6. agrees to a sustainable direct debit payment arrangement that will allow the debt to be paid within 12 months.
Note that you may be granted 12 months to pay that debt, but ALL future BAS and other business liabilities MUST be paid on time while you have the re-payment agreement.
Call the ATO on 13 11 42 between 8.00am and 6.00pm, Monday to Friday, apply for a General Interest Charge (GIC) holiday. Also talk it over with your accountant or BAS Agent (such as ourselves, there is no charge). There are ways that you can get you through this difficult time

Categories Business Tax Tips & GST, Consulting

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