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Opinion: Bad behaviour by the ATO

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Australian Broker | 29 Dec 2014, 08:13 AM Agree 0
Just Budget's John Dickinson on how the ATO is failing borrowers in hardship
  • Roman | 29 Dec 2014, 09:56 AM Agree 0
    Under income act assesment act 1997
    Defenition of an individual is : includes a natural person
    The defenition of a person is : person" includes a company.

    It does not say anywhere that a living breathing man should pay income tax.

    Also this act fails to define the word " income"

    The legal defenition of income is profit and not wages and salaries, go amd ask the ato what is the defenition of income, every time they give a different answer.
  • sadler.. | 29 Dec 2014, 10:09 AM Agree 0
    I wish to keep my name anonymous thus using a fake name.

    I owed ATO mere $9000 due to slowdown in a business investment resulting in financial hardship. At the time, I could at the most afford to pay $300 per month and needed time before I can work towards making more money and be able to pay more monthly payments. I called and discussed the matter with ATO.

    Besides Mary, I am another person getting the similar response. I was told they can accept a minimum upfront of $1000 and a minimum monthly payment of $450, which must pay off the debt within 18 months. Anything less than those amounts were unacceptable and the next step explained was to put me to recovery company and bankruptcy if I still dont pay up.

    I was contacted by the recovery company with whom I set up the repayment of $250 per month. They gave me initial 3 month probationary repayment period, which meant that if my circumstances change and I can pay more after that, I can change the monthly payable amounts. All this with no interest being added to the amount owed while they payments are going to the recovery company.

    In summary, having experienced the similar treatment from ATO, I also wish to vote for ATO to mend its ways to help people going through hardships and give them a reasonable chance to pay their debt instead of pushing towards the tough choice of declaring oneself insolvent.
  • JR | 29 Dec 2014, 11:32 AM Agree 0
    A very good article John - I have a few clients in the same position. Let's hope the ATO adopts a better approach to payment plans soon.
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