If your company is under financial pressure and as a result it owes money to the ATO it is only a matter of time before the ATO initiates winding up proceedings against your company. Typically, when a company is distressed the first creditor to stop being paid is the ATO, most commonly because there is simply just not enough money to pay all the outstanding tax and keep business going. However, this is also why the ATO are unlikely to show much compassion because their view is that everyone is being paid except them.
If the ATO (or any other creditor) has not yet initiated winding up proceedings it is not too late to take action to save your business. See our tax advisory, planning and restructuring section for more information about lawful insolvency restructures to help preserve your cash flow.
If you have already been served with a winding up order (s459E statutory demand) you only have 21 days to take action. it is important that you act urgently to avoid unnecessary and unwanted problems that are associated with the court process and subsequent liquidation by a court-appointed liquidator. Remember the liquidator works on behalf of the creditors, which in most cases is the ATO, so it is important that you take all necessary action to ensure your rights protected.
CharterLaw Legal has extensive experience in dealing with liquidations by utilising a solid network of high ranking contacts within the ATO to achieve results that can only be obtained by tax professional who understand ATO policies and procedures. Working constructively with the ATO in way that robustly protects your interests can result in potential ATO criminal prosecutions being avoided and to a negotiated settlement with the ATO. Our objective is you pay what is fair but as little as possible.