Latest News

Hot Issues
spacer
Our 2021 Advent Calendar.
spacer
State and Federal COVID-19 support
spacer
ATO flags focus areas for combating $33.5bn ‘tax gap’
spacer
Business Resources - Grants, Assistance, Resources and more.
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
FBT – Christmas Parties and Taxi Fares
spacer
How the best firms are supporting the mental health of their employees
spacer
Asian Economies (1960 - 2020)
spacer
Making the festive season less taxing
spacer
Why more Millennials are turning to SMSFs
spacer
Company directors must register - all you need to know
spacer
Hardship priority processing of tax refunds
spacer
Business valuations: Tips, tricks and traps
spacer
Government moves to scrap SG $450 threshold
spacer
World's most productive countries
spacer
Superannuation changes - Superannuation guarantee (SG)
spacer
Unused Super Contributions
spacer
Main residence exemption myths and misconceptions
spacer
ATO extends COVID-19 relief for SMSFs
spacer
Treasury consults on increase to charities financial reporting threshold
spacer
Greenhouse gas emission by country since 1880
spacer
ATO announces STP Phase 2 blanket deferral
spacer
Reminder: super changes for the 2021 financial year
spacer
Recontributions of COVID-19 early released super
spacer
Working from home during a COVID-19 lockdown: Can you claim a tax deduction for rent?
spacer
Lockdowns and mental health
spacer
Unemployment rate falls to 12-year low
spacer
ATO issues warning to first-time investors
spacer
World's largest armies 1816 - 2020
spacer
Extra 'super' step when hiring new employees
spacer
Pitfalls and proposed changes in the use of R&D tax incentives
spacer
Government expands SME loan scheme eligibility
Article archive
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 2 of, 2017 archive
spacer
‘Bank-like heists’ make way for new wave of cyber crime
spacer
ATO reports on key contraventions for 2016-17
spacer
ATO, mid-tiers warn on common expenses myths
spacer
SMSF trustees told to take action on contributions
spacer
Higher instant asset write-off threshold for small business extended
spacer
Australian population figures
spacer
New data points to spiralling retirement costs
spacer
Personal insolvency numbers spike across Australia
spacer
ATO cracking down on taxable fringe benefits
spacer
Intangible capital improvements made to a pre-CGT asset
spacer
The three core pillars of this year's budget
spacer
Federal Budget - 2017-18 - Overview
spacer
Does your business import or export goods and services?
spacer
Federal Budget - 2017-18 - Budget documents
spacer
When does an asset cost less than $20,000? Depreciating assets: composite items
spacer
ATO finalises guidance for capped defined income streams
spacer
Warning on trap with trust deed updates
spacer
2011 Census - what was the make up of your area?
spacer
It’s no secret that Australians have some of the largest houses in the world.
spacer
Resources on our site to help you and your family.
spacer
ATO defends approach to SG compliance
spacer
Essential steps for SMSF clients before 30 June
spacer
New tax incentives for early stage investors
spacer
FBT Reminder – Odometer Reading
spacer
ATO on 'aggressive' debt recovery hunt
spacer
More ATO downtime looms ahead of tax time
spacer
Tax debt release applications refused
spacer
Troublesome tax system overhaul picks up speed
spacer
Government to ‘put to bed’ uncertainties with TRIS
spacer
Travel expense and transport of bulky tools claim denied
spacer
New law sheds light on global tax issues
spacer
Report tips housing price spikes to wipe out super savings
ATO on 'aggressive' debt recovery hunt

The ATO is showing no signs of easing up on its crackdown on companies owing money and pushing them into insolvency if required, with one mid-tier firm citing a recent spike in insolvencies

       

 

Last week, solvency and forensic accounting firm Worrells released The Worrells Insolvency Report 2015-16. 

Looking back over the last 10 years, the report showed that the total number of insolvencies in Australia spiked in 2008-09 as a result of the GFC. After remaining steadily high through to 2012-13, the number of insolvencies dropped in 2014-15.

Now, interestingly, the numbers are beginning to spike again, and this is because of the ATO’s crackdown on debt according to Worrells partner Chris Cook.

“There are businesses out there that, if left to their own devices, just sit there in no man’s land with debt owing. So there are businesses, as unfortunate as it is, that sometimes need to look at liquidation as an alternative,” Mr Cook told Accountants Daily.

“The ATO is certainly a lot more aggressive than they used to be, they're a more active debt collector than they used to be. I don't see that necessarily as a bad thing, as long as they are compassionate to the businesses.”

The report showed that the number of applications the ATO lodged with the Federal Court of Australia to wind up a company increased dramatically in May 2015, signalling the beginning of their crackdown.

“The number goes up from April to May [2015] from around 100 up to about 550,” Mr Cook said.

“From there it stays fairly high for six months, then it goes up and down a little bit, and then in June last year, which is where our data finishes for the purposes of this report, it finishes at about 300.”

While the data from June 2016 isn’t available yet, Mr Cook said that the ATO is far from done with its crackdown.

“The ATO is not slowing down at this stage and to be fair, sometimes that needs to happen,” he said.

“I don’t think this is a short term thing. I think the ATO is going to continue with this aggressive debt collection campaign, and I don’t believe that's a bad thing, as long as it’s done properly.”

 

LARA BULLOCK
Wednesday, 22 March 2017
www.accountantsdaily.com.au

© O'Brien and Partners 2011 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922