ATO to get tough on SME debt
A recent inspector-general of taxation’s report found the ATO was owed $35.3 billion in 2013-14, up 9.7% on the previous financial year. This is a staggering amount (and attractive low-hanging fruit as the federal government seeks to reign in the deficit).
We have already seen a tougher approach from the ATO on payment arrangements, and it will be much more difficult for SME’s to accumulate debt in the future, both in terms of the amount and the repayment period.
The ATO have been winding-up businesses at unprecedented levels and our belief is this will continue, and possibly increase. The assets of your business and quite possibly those you own personally could well be at serious risk.
Quite simply, the need for SMEs to have adequate working capital is more critical than ever.
We can help you source alternative forms of working capital through our own in-house finance specialists, or via invoice factoring through cash flow solutions firms such as FIFO Capital (http://www.fifocapital.com.au/).
We encourage all business clients to explore alternative strategies that improve your cash flow and grow your business so the taxman never becomes a problem.
We are here to help. Call (03) 8888 4000 or email firstname.lastname@example.org for further information.