Latest news with #PenaltyNotices
Time Business News
30-06-2025
- Business
- Time Business News
A $50 Billion Storm: How the ATO's Debt Recovery Push Is Rocking Australian SMEs
The calm is over. After years of pandemic-era leniency, where many Australian businesses received a much-needed lifeline from the Australian Taxation Office (ATO), the taxman is now back with a vengeance. We're witnessing an unprecedented push to claw back outstanding debts, and the figures are staggering: a colossal $50 billion in unpaid taxes and superannuation is on the ATO's radar. And critically, a staggering 65% of that colossal sum – approximately $34 billion – hangs over the heads of Australia's small and medium enterprises (SMEs). This isn't just about balancing the government's books; it's a profound shift that's sending ripples through the SME sector, pushing many to the brink. Following the temporary reprieve during the COVID-19 pandemic, the ATO has resumed its full-scale debt collection efforts. The era of gentle reminders is over, replaced by a suite of powerful, and often unforgiving, enforcement tactics. The tax office is deploying everything from garnishee notices that directly tap into your bank accounts, to Director Penalty Notices (DPNs) that strip away the corporate veil, and credit agency disclosures that can torpedo a business's reputation and future borrowing capacity. This aggressive stance is a direct response to the massive backlog accumulated over the past few years. The impact of this intensified ATO enforcement is already stark and alarming. It has coincided precisely with a sharp, undeniable surge in SME insolvencies across Australia. Reports indicate that approximately one-third of businesses owing $100,000 or more have already collapsed under the pressure and many others are looking at how to legally recover their commercial debts. The numbers speak volumes: insolvency appointments spiked by nearly 47% in the first half of the 2025 financial year compared to the previous year. This isn't just a statistical blip; it's a deeply concerning trend that threatens the backbone of the Australian economy. Adding another formidable layer of financial pressure is a crucial legislative change effective from 1 July 2025. From this date, ATO interest charges are no longer tax-deductible. Previously, the General Interest Charge (GIC), which compounds daily and currently sits at over 11%, offered a small offset through deductibility. Now, that offset is gone. This seemingly subtle change dramatically increases the true cost of holding tax debt, transforming it into an even heavier burden, especially for SMEs already operating on razor-thin margins. Every day a debt goes unpaid, it becomes significantly more expensive, with no relief in sight from the tax deduction. To effectively navigate this challenging environment, SMEs must understand the specific tools the ATO is wielding: Garnishee Notices: These are perhaps the most immediate and disruptive. When the ATO issues a garnishee notice, it gains the power to seize funds directly from your business's bank accounts. They can also intercept payments owed to your business by your debtors or even payments from employers if it's a personal tax debt. This bypasses the business's control, often leaving it unable to cover essential operating costs or payroll. The ATO's use of this tactic has noticeably intensified since 2022. Director Penalty Notices (DPNs): This is a serious personal threat for company directors. DPNs hold directors personally liable for specific outstanding company tax debts, namely Pay As You Go (PAYG) withholding, GST, and Superannuation Guarantee Charge. The notice typically provides a mere 21 days to respond and comply, or the director risks personal bankruptcy or legal action to recover the debt from their personal assets. It's a stark reminder that the corporate veil can be lifted when it comes to specific tax obligations. Credit Reporting: The ATO now uses credit reporting as a significant enforcement tool. If your business has an unpaid debt above $100,000, and you've failed to engage with the ATO for two months, that debt can be listed on your business's credit report. This public disclosure severely damages the business's borrowing reputation, making it incredibly difficult to secure loans, trade credit, or even leases in the future. In today's credit-reliant business landscape, a damaged credit score can be a death knell. The current climate demands proactive and strategic action. Here's what SMEs can and must do: Monitor Tax Obligations Closely and Constantly: This isn't just about filing; it's about meticulous, real-time record-keeping. Ensure accurate records for PAYG, GST, superannuation, and income tax. Timely lodgement and, crucially, payment are your first line of defence against escalating debt and GIC. Utilise accounting software that provides a clear, current view of your tax liabilities. Engage with the ATO Early and Honestly: If you foresee or are experiencing difficulties in meeting your tax obligations, do not wait. Contact the ATO before due dates or as soon as problems arise. The ATO is generally more receptive to businesses that are proactive and transparent. You may be eligible for a flexible payment plan, a partial or full remission of the GIC, or other tailored assistance programs designed to help manage temporary cash flow issues. Ignorance or avoidance is not a strategy; it's a pathway to aggressive enforcement. Use Restructuring Strategically (and Early): If your business's debt burden is significant and cash flow remains tight, consider a Small Business Restructuring (SBR) process. This relatively new insolvency pathway offers a formal, streamlined method to negotiate with all your creditors, including the ATO. It can provide a breathing space and a chance to restructure operations without immediately going into full administration or liquidation, potentially saving your business. This is a complex step and requires expert guidance. Consult a Professional Tax & Financial Advisor: This is perhaps the most critical step. A registered tax agent, accountant, or financial advisor who understands Australian tax law and business finance is invaluable. They can: Help you negotiate realistic repayment strategies with the ATO. Evaluate your financial position to determine eligibility for GIC remission. Assess alternatives like refinancing existing debt at lower interest rates from commercial lenders. Provide a clear understanding of your current and future tax liabilities. Identify potential hidden tax risks. 5. Prepare for ATO Enforcement: While proactive engagement is key, it's also prudent to be prepared for the worst. Stay vigilant for any ATO notices, especially DPNs or garnishees, and understand the strict deadlines. If you receive one, immediately seek legal and financial advice. Arrange for potential contingency funding or pre-emptively discuss options with your bank or creditors to respond effectively within tight deadlines and avoid severe consequences. For Australian SMEs facing the renewed ATO debt recovery push, the landscape is treacherous. This is where specialized professional support becomes not just beneficial, but often essential. Accountants and business advisors, working hand-in-hand with legal professionals to help try to avoid tax audits, play a pivotal role. They can: Translate ATO Jargon: Demystify complex ATO notices and regulations, helping businesses understand their obligations and rights. Demystify complex ATO notices and regulations, helping businesses understand their obligations and rights. Structure Negotiations: Expertly negotiate repayment plans with the ATO, leveraging their understanding of tax law and financial principles to secure the best possible terms. Expertly negotiate repayment plans with the ATO, leveraging their understanding of tax law and financial principles to secure the best possible terms. Identify Solutions: Beyond simple payment plans, they can identify deeper financial issues and recommend strategic restructuring options like SBR. Beyond simple payment plans, they can identify deeper financial issues and recommend strategic restructuring options like SBR. Protect Directors: Provide crucial advice to directors on their personal liabilities under DPNs, outlining clear pathways to minimize personal risk. Provide crucial advice to directors on their personal liabilities under DPNs, outlining clear pathways to minimize personal risk. Manage Credit Reporting Impact: Advise on strategies to engage with the ATO to prevent or mitigate negative credit reporting impacts. Strategic Debt Recovery for SMEs: Beyond managing debts owed to the ATO, many SMEs struggle with their own outstanding invoices and slow-paying clients. This can severely impact their ability to meet tax obligations. Engaging ethical, professional, Australian based debt recovery services can be a vital step in improving a businesses cash flow via debt collection. These reputable firms, often working in conjunction with your accountants and legal advisors, can efficiently recover monies owed to your business. Their expertise in respectful communication and compliance with Australian regulations ensures debts are collected professionally, providing the necessary liquidity to meet tax obligations, avoid ATO enforcement, and sustain overall operations. A robust receivables management strategy, supported by professional collectors, can be a proactive defence against financial pressure from all sides. This integrated approach ensures SMEs have a comprehensive defence strategy, addressing both the immediate tax debt and the broader financial health and legal compliance of the business. The ATO's renewed and aggressive focus on debt recovery, coupled with the end of interest deductibility, presents significant challenges for Australian SMEs. The days of deferring tax liabilities with minimal consequence are over. However, this period of heightened scrutiny is not insurmountable. By embracing a proactive approach – meticulously monitoring obligations, engaging early and honestly with the ATO, strategically considering restructuring options, and crucially, securing expert professional help from legal and financial advisors – businesses can effectively manage their tax liabilities. Don't wait for the knock on the door; equip yourself with knowledge and expert support today to weather this storm and ensure the long-term viability of your enterprise. TIME BUSINESS NEWS
Powys County Times
01-06-2025
- Automotive
- Powys County Times
How you could get a roadside fine amid new DVSA changes
Motorists can now use Apple Pay and Google Pay to settle roadside fines under new changes from the Driver and Vehicle Standards Agency (DVSA). The alteration came into effect earlier this week, and is intended to make the process simpler for drivers. It comes as the DVSA has started using a new company to process payments for roadside fines. This will enable drivers to use their smartphones at the roadside to pay for several offences. The DVSA has the authority to issue Fixed Penalty Notices (FPNs) for various offences related to vehicle condition, driver hours and licensing, impacting both domestic and international drivers. What could I get a roadside fine for? Some common offences that could see drivers hit with a DVSA roadside fine are listed below. Driver's House and Tachograph Offences Exceeding daily or weekly driving time limits Not taking required breaks or rest periods Failing to use a tachograph Using a defective or tampered tachograph Falsifying or failing to produce tachograph records Vehicle Roadworthiness Driving with defective brakes, tyres, lights, suspension, or steering Dangerous load securing or overloaded vehicles Failure to carry out proper daily walkaround checks Operating an unroadworthy vehicle (may result in a prohibition as well as a fine) Licencing and Documentation Driving without a valid driver's licence or correct entitlements (e.g., no HGV licence) Operating without a valid Operator's Licence No MOT certificate (if required) Lack of vehicle insurance or road tax Failure to produce required documentation (e.g. vehicle registration, insurance) What is Fuel Duty? Weight and Load Offences Overloading axles or gross vehicle weight Incorrect or dangerous load securing Incorrect use of trailers Emissions and Mechanical Defects Emissions tampering e.g. AdBlue cheat devices or DPF removals Using a vehicle that does not meet emissions standards Driver Conduct and Road Safety Using a mobile phone while driving Driving without wearing a seatbelt Poor vehicle condition leading to immediate prohibition Excessive vehicle noise or emissions Recommended reading: Fines can range from £50 to £300 per offence, depending on severity, and multiple fines can be issued at once (for both driver hours and vehicle defects). Major changes to car tax were also introduced earlier this year, seeing costs go up for many drivers.
Wales Online
29-05-2025
- Automotive
- Wales Online
UK drivers face roadside fines for 27 offences as new change is introduced
UK drivers face roadside fines for 27 offences as new change is introduced The DVSA has a new system coming into place which will speed up how you pay penalties. Here is a list of all the common fines road users face The DVSA are set to upgrade their payment system (Image: Getty ) New changes to the payment system used by the Driver and Vehicle Standards Agency (DVSA) have come into force, permitting drivers to settle bills using Apple Pay and Google Pay. Starting on Wednesday (May 28), the DVSA will roll out the new method to allow different forms of payment. The change means the payment screen for standard card payments will look slightly different. Users will not have to change the way you use the payment system and many people will not notice a difference. The change means drivers can choose to use Apple Pay and Google Pay. A spokesperson for the DVSA said: "Many people will find this quicker and easier than a standard card payment, especially when using a mobile phone." In the UK, the DVSA is authorised to issue on-the-spot fines (Fixed Penalty Notices or FPNs), for a wide range of driving-related contraventions including vehicle condition, driver hours, and licensing offences. Such actions can be enforced against both domestic and international drivers, reports the Express. Here are the common reasons drivers or operators might receive a DVSA roadside fine: Driver's Hours and Tachograph Offences Exceeding daily or weekly driving time limits. Not taking required breaks or rest periods. Failing to use a tachograph. Using a defective or tampered tachograph. Falsifying or failing to produce tachograph records. Vehicle Roadworthiness Driving with defective brakes, tyres, lights, suspension, or steering. Dangerous load securing or overloaded vehicles. Failure to carry out proper daily walkaround checks. Operating an unroadworthy vehicle (may result in a prohibition as well as a fine). Licensing and Documentation Driving without a valid driver's licence or correct entitlements (e.g., no HGV licence). Operating without a valid Operator's Licence. No MOT certificate (if required). Lack of vehicle insurance or road tax. Failure to produce required documentation (e.g. vehicle registration, insurance). Weight and Load Offences Overloading axles or gross vehicle weight. Incorrect or dangerous load securing. Incorrect use of trailers. Emissions and Mechanical Defects Emissions tampering (e.g., AdBlue cheat devices or DPF removals). Using a vehicle that does not meet emissions standards. Driver Conduct and Road Safety Using a mobile phone while driving. Driving without wearing a seatbelt. Poor vehicle condition leading to immediate prohibition. Excessive vehicle noise or emissions. Fines and Penalties Fines can range from £50 to £300 per offence, depending on severity. Multiple fines can be issued at once (e.g., for both driver hours and vehicle defects). In serious cases, vehicles may be immobilised until issues are resolved or fines are paid. Foreign drivers/operators may be required to pay on-the-spot deposits. Article continues below
Yahoo
05-05-2025
- Yahoo
New dog rules introduced by Tower Hamlets council
Dogs will be banned from all gated children's areas and must be kept on a lead on pathways after an east London council approved new rules under a Public Spaces Protection Order (PSPO). The move, by Tower Hamlets council, follows several attacks by dogs since 2023, the Local Democracy Reporting Service said. Councillor Shafi Ahmed said the council knew the majority of dog owners were responsible and their animals posed no risk of harm. However, he added, "several high-profile incidents" led to residents expressing concern about dangerous dogs, particularly about risks to young children. Tower Hamlets has the eighth highest crime reports relating to dog attacks out of all 32 London boroughs. Tower Hamlets will join neighbouring boroughs Newham and Hackney, which have had dog control PSPOs in place for many years. According to internal police data, there were 92 dog attack crime reports in the borough between April and October 2024. New rules to tackle 'out-of-control' dogs proposed Dog foster carers needed urgently - charity Don't go into water to save your dogs, owners told Under the new rules, dogs will still be allowed to play off-lead freely in all parks and green spaces in the borough but the following measures will be introduced in the autumn: Dogs will be banned from certain areas such as gated children's play areas and sports areas A maximum of four dogs per person, unless they have a professional dog walker licence issued by the council Dogs must be kept on leads on or near roads, pavements and communal estate areas Owners must put their dog on a lead if an authorised officer asks them to Fixed Penalty Notices (FPNs) for dog fouling as well as all of the above. The new rules will not apply to people who are registered blind, are deaf and those with a physical or mental impairment who use dogs for assistance, in line with the Equality Act 2010. Listen to the best of BBC Radio London on Sounds and follow BBC London on Facebook, X and Instagram. Send your story ideas to
BBC News
05-05-2025
- BBC News
Stricter dog rules to be brought in by Tower Hamlets council
Dogs will be banned from all gated children's areas and must be kept on a lead on pathways after an east London council approved new rules under a Public Spaces Protection Order (PSPO).The move, by Tower Hamlets council, follows several attacks by dogs since 2023, the Local Democracy Reporting Service Shafi Ahmed said the council knew the majority of dog owners were responsible and their animals posed no risk of he added, "several high-profile incidents" led to residents expressing concern about dangerous dogs, particularly about risks to young children. Tower Hamlets has the eighth highest crime reports relating to dog attacks out of all 32 London boroughs. Tower Hamlets will join neighbouring boroughs Newham and Hackney, which have had dog control PSPOs in place for many to internal police data, there were 92 dog attack crime reports in the borough between April and October 2024. Under the new rules, dogs will still be allowed to play off-lead freely in all parks and green spaces in the borough but the following measures will be introduced in the autumn:Dogs will be banned from certain areas such as gated children's play areas and sports areasA maximum of four dogs per person, unless they have a professional dog walker licence issued by the councilDogs must be kept on leads on or near roads, pavements and communal estate areasOwners must put their dog on a lead if an authorised officer asks them toFixed Penalty Notices (FPNs) for dog fouling as well as all of the new rules will not apply to people who are registered blind, are deaf and those with a physical or mental impairment who use dogs for assistance, in line with the Equality Act 2010.
