Situation

The client started their own business as a service provider in the disability sector. The company was established in December 2018, and it grew exponentially in 2020. 

Having only moved to Australia less than 10 years ago, the client felt that they were not completely informed in Australia’s tax processes and acknowledged that there was a substantial language barrier that would greatly impact their day-to-day work life. As a result of the business’ quick expansion and these communication barriers, the client turned to a family friend and engaged their accounting services for additional support with tax planning to ensure the business would meet all their taxation obligations. The client chose this particular accounting firm as they had built a strong friendship with one of the Partners who spoke the same language. 

The client felt that they made a well-informed decision to trust the accounting firm but unfortunately, the client was ignored and neglected on numerous occasions and as a result, tax debt began to accrue and the business suffered. 

The client felt deceived and began feeling hopeless about their overwhelming tax debt. Afraid to be misunderstood and let down again, the client was stuck with no one else to turn to. 

Strategy

The client contacted TDSA and we conducted an analysis on the their accounts and found a Part 7 penalty of over $200,000 was applied to the Company’s Superannuation Account. Additionally, there was a tax debt totalling over $1M across the Company’s Tax Accounts.  

TDSA met with the client and learned about their circumstances in much more detail. We prepared a comprehensive and evidence supported application for a remission of the Part 7 Penalties and a proposal for a long-term payment arrangement. TDSA spent months negotiating back and forth over the phone with an ATO case officer.

Whilst in negotiation, the client’s circumstances changed multiple times which in turn changed required us to change the strategy we initially implemented with the ATO. We spent a considerable amount of time planning our approach with the client and patiently worked alongside the ATO to achieve a favourable payment arrangement.  

Success