I recently engaged a client who was in debt with the Australian Taxation Office. The advice provided by their previous accountant was to take out a mortgage against their home to pay off the entire existing tax debt. The client trusting their former accountant followed the advise and took out a loan against their home to finalise the debt. The problem was the client was now starting to go backwards again with their taxation debt and contacted me to obtain a second opinion.
When I reviewed the client situation the previous accountant had not investigated other alternatives nor had approached the tax office regarding what arrangements could be organised regarding a payment plan for the debt. The loan the client had obtained was also not the best product on the market due to the rushed nature of the transaction. To compound the frustration the previous accountant had charged for his time to provide this advice.
Following my review the client and I put in place cash flow management tools as well as organised a payment arrangement with the tax office with the new taxation debt that was starting to arise. The client has also since refinanced the loan to a better loan product through a trusted referral partner that will also save the client money.
If you have a tax debt or feel you are going backwards with the tax office or with your current accountant don’t hesitate to get in touch with us to discuss how you can start moving forward.