Of all the government agencies that small business owners interact with, the ATO would have to be the one that people understand the least. From the priorities of the agency to ATO tax debt negotiation and how that works, people often allow the ATO to terrify them, but, with the right support, the ATO is far more reasonable than many realise. 

Here are some of the common myths about the ATO that lead people to think that they’re the bogeyman.

1)    The ATO is out to get you

This is the most common perception of all that we come across. Many do have the impression that the ATO is actively looking for excuses to close businesses down and force business owners into debt.

This isn’t true at all, and the ATO’s role is to ensure compliance, but also assist businesses in remaining operational. For those businesses that engage in good faith, the ATO is going to be reasonable and open to negotiation. 

2)    Negotiating with the ATO will result in a big burden to your business

It is also untrue that the outcome of any ATO tax debt negotiation is going to be unmanageably large repayments. The ATO understands that businesses need cashflow to operate, and a negotiation will result in a payment plan, spread over several years, that will give you the chance to get your business back under control.

In fact, when you work with experienced negotiators like EPAS, you will also be able to negotiate down a debt so that you’re paying cents on the dollar. With the right accounting support, the ATO will seek to recover what is reasonable for the circumstances of your business. 

3)    I don’t need an accountant to deal with the ATO

Many small business owners attempt to deal with the ATO directly. You can do this, but without knowing how the ATO operates or negotiates, it will be difficult to get the most favourable outcome. 

In fact, many accountants won’t even be as effective as you might expect! Emergency Accounting – which includes negotiating with the ATO – is a highly specialised field and requires specific skills and experience. Many of our clients at EPAS have come to us after their existing accountant was unable to help them, and they were facing a financial disaster. We were not only able to effectively engage with the ATO and “right the ship,” but help the client to understand how they ended up in the position that they did, and the steps they needed to take to strengthen their business for the future. 

Remember – effectively engaging in ATO tax debt negotiation can not only save your business, but it can also save you from the debts accrued transferring to become your personal debt. If you’re dreading hearing from the ATO, then it’s likely that you’ve fallen for one of these common myths, and you should talk to EPAS as soon as possible. 

Click here for more information on our ATO tax debt negotiation services.