ATO Remission
The Australian Taxation Office (ATO) charges interest on unpaid tax debts, known as the General Interest Charge (GIC). This interest accrues daily on the outstanding balance until the debt is fully paid. The GIC rate is updated quarterly and is typically higher than standard bank interest rates. If left unpaid, the total debt continues to grow due to compounding interest.
Other Penalties for Small Businesses and Directors
In addition to interest, the ATO can impose further penalties, including:
- Failure to Lodge (FTL) Penalty – For late tax returns or activity statements.
- Director Penalty Notice (DPN) – Making directors personally liable for unpaid PAYG withholding, GST, and superannuation.
- Legal Action – The ATO can issue garnishee notices, wind-up companies, or take court action.
How Leo Iermano & SBR Assist Can Help
Leo Iermano, head of SBR Assist, specialises in negotiating with the ATO to reduce or remove penalties and interest charges. His team can:
- Arrange manageable payment plans.
- Negotiate discounts or full waivers of accrued interest and penalties.
- Secure settlements that ease financial pressure on businesses.
If your business has ATO debt, expert assistance can make a significant difference in resolving it efficiently.