This warning was articulated by Jeremy Hirschhorn, the second commissioner of the ATO, who is also a contender to replace outgoing commissioner Chris Jordan next year.
According to the AFR, there has been a noticeable increase in small businesses using unpaid tax and superannuation liabilities to bolster their cash flow.
In response to this growing trend, the ATO has announced that it will be intensifying its compliance actions starting in 2024. This move indicates a shift towards stricter enforcement and oversight by the tax authority.
Small businesses should be prepared for heightened scrutiny from the ATO, especially those that have been relying on unpaid taxes to manage their cash flow.
This warning serves as a reminder for small businesses to adhere to proper financial management practices, ensuring that tax and superannuation obligations are met in a timely manner.
Non-compliance could lead to significant legal and financial repercussions for businesses found to be using tax liabilities to sustain their operations.
The ATO’s warning is a clear message to small businesses about the importance of adhering to tax laws and regulations. It underscores the need for responsible financial management and the potential risks of non-compliance. Businesses are advised to review their financial strategies and ensure they are in line with legal requirements to avoid future complications with the ATO.
If you are thinking about refinancing your tax debt, it’s easy to apply online with Moula. Or speak with one of our team members on 1300 88 09 72.
