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INSOLVENCY ALERT – CASUALS

Directors and Accountants beware!

Author: James Welch

10 August 2021

The ATO has recently presented to various bodies to update its stakeholders with respect to its collection mandate in this new Financial Year. Directors must shift their focus to dealing with their ATO Debt head on. Various insolvency and restructuring options have been presented as a way to resolving ATO Debt, including by way of the small business restructuring process, and simplified liquidation process.

In our interactions with our colleagues in the insolvency industry, and from our own enquiry lines, we have seen an increase in ATO activity.

Whilst this second lockdown presents new opportunities for government grants which may appeal to companies struggling to survive, there so far is no discussion of an amnesty with respect to insolvent trading such as that which occurred last year.

Director’s personal liabilities are in play in this second lockdown, and early expert advice should be sought as significant benefits can be derived through an effective restructuring process.

If the ATO is ramping up their interactions to recover their debt with you, or with your clients, contact James Welch at Access Law Group to obtain early expert assistance. You will be surprised what outcomes may be possible when there is no other light on the horizon.

Contact the ALG team on (02) 4220 7100 or by email at lawyers@alg.com.au to book an initial consultation.