Tax dodgers beware: ATO under pressure to recoup record $45bn debt
The Australian Taxation Office is under pressure to recoup a record debt of $45 billion and they could soon be knocking on Australian taxpayers’ doors.
Money
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The Australian Taxation Office will soon be knocking on a lot more doors with the pressure on to recoup a record debt of $45 billion.
On Wednesday, tax commissioner Chris Jordan told a Senate Estimates hearing about the debt blowout which includes collectable debt, insolvency debt and debt subject to objection or appeal.
The majority of the collectable debt owed to the ATO – which has an operating budget of $3.9 billion – is from small businesses.
In the last financial year $1.4 billion and $2.8 billion were determined to be uneconomical to pursue and irrecoverable at law.
Mr Jordan said the $45 billion debt needed to be address quickly lest it, “take funds away from the provisions of government services and employees will miss out on future retirement benefits”.
“I am the chief tax collector,” Mr Jordan said.
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“It is not a particularly easy or popular role, but it is one I took on voluntarily.
“In discharging my duties I must do the best I can to ensure we at the ATO act with empathy where appropriate, but at the end of the day collect the tax that is due.”
Mr Jordan said the ATO has about 8 million “debt interactions” a year and contacts a debtor 19 times before garnishing earnings.
“We attempt to engage with taxpayers for an extended period, and provide them with every chance to rectify their situation and pay the amounts due under law,” he said.