ATO - Payment Plan, tell me this can not happen

[MTR]

Know someone who has finally had to cough up $50,000 CGT, thought she could/would get away with it as it was her only property. This property had been rented out for 10+ years. She completely ignored the CGT issue and was shocked when she received a letter from ATO, requesting - $50,000 this also included outstanding HEC fees from some 10 years ago that she was never going to pay back.

Wont bore you with all the details, however she does not have a job (no income she discloses) and believes she can work a payment plan with the ATO - $50 per month even though she used the proceeds from the sale of this property to purchase another property which she rents out and lives off this income.

Please tell me that can not happen?? Seriously I pay my taxes like everyone else, but when I was told she would negotiate $50 per month it absolutely infuriated me. This is just so wrong

Also, did I mention she will be getting $48,000 compensation from a car accident she recently had, she mentioned that this has to be disclosed to ATO, but she wants to keep those funds, well of course she would.

My rant for the day

MTR

 

[Strannik]

same as bad tenants can rack up a rent debt, and then when the magistrate finally makes them pay it - it's 20 bucks a month.

 

[D.T.]

Quite unlikely they'd allow such a small amount.

I've been on a payment plan with them and they wouldnt allow anything less than $1100 a month for me.

 

[Strannik]

Quite unlikely they'd allow such a small amount.

I've been on a payment plan with them and they wouldnt allow anything less than $1100 a month for me.

where would you get that money when you are unemployed?

 

[Aaron Sice]

Larger debts over $25k generally incur a 20-25% deposit and then a payment plan that generally doesn't extend past two years.

If the debt is due to an honest oversight, they MAY accept a 10-15% lump sum and then favourable repayment plan.

Either way - you have to make good on the tax liability. Ignorance of the law is no exception - intentionally or not.

 

[D.T.]

where would you get that money when you are unemployed?

I'm not sure. That was about a quarter of my take-home income at the time. So perhaps that's how they worked it out?

 

[MRO]

Interest will be charged at higher than mortgage rates - more like personal loan rates. I am sure one of the tax guys can confirm the current rate.

They would not have allowed such a small payment on a debt of that value as it would not cover the interest.

 

[MTR]

Seriously how could ATO accept $50 per month how many years would it take to pay this off?

She is currently incurring something like $350 interest per month, as no plan in place yet.

Be interesting to have some feedback from the account/tax guys

 

[Colin Rice]

Seriously how could ATO accept $50 per month how many years would it take to pay this off?

She is currently incurring something like $350 interest per month, as no plan in place yet.

Be interesting to have some feedback from the account/tax guys

I think they will be thinking $50 is better than $0.

 

[Terry_w]

Its a debt owed, they could take action to seize her property. But they probably would accept a payment plan, but would want the debt paid off in a reasonable.

 

[MTR]

Payment plan fine, but over 40 years??

I guess I am a little more than annoyed that we pay taxes and then you get these parasites that work the system and get whatever is available they make a career out of it.

Never heard of ATO seizing property.

 

[sash]

Hilarious....I think the ATO will be looking to repo her assets....she is lucky she is not being prosecuted!

I guess with the sacking of ATO staff they don't have as many resources.

Know someone who has finally had to cough up $50,000 CGT, thought she could/would get away with it as it was her only property. This property had been rented out for 10+ years. She completely ignored the CGT issue and was shocked when she received a letter from ATO, requesting - $50,000 this also included outstanding HEC fees from some 10 years ago that she was never going to pay back.

Wont bore you with all the details, however she does not have a job (no income she discloses) and believes she can work a payment plan with the ATO - $50 per month even though she used the proceeds from the sale of this property to purchase another property which she rents out and lives off this income.

Please tell me that can not happen?? Seriously I pay my taxes like everyone else, but when I was told she would negotiate $50 per month it absolutely infuriated me. This is just so wrong

Also, did I mention she will be getting $48,000 compensation from a car accident she recently had, she mentioned that this has to be disclosed to ATO, but she wants to keep those funds, well of course she would.

My rant for the day

MTR

 

[Xenia IM]

wow, they really allowed that?
interesting.

 

[datto]

Nothing new here. Actually most debts to the ATO are a civil matter. So when the taxpayer doesn't pay and gets the summons, they can apply to the court for an instalment order. Just fill in a couple forms, show a centrelink card , cry poor and away she goes.

Of course, judgement is entered and interest accrues. And of course most people default on their instalment order and legal action to collect the debt re-commences

 

[MTR]

Hilarious....I think the ATO will be looking to repo her assets....she is lucky she is not being prosecuted!

I guess with the sacking of ATO staff they don't have as many resources.

Your right, she is looking at all angles and seems to float above the water every which way. She had a recent car crash, next day went to the doctors, then the lawyers, working the system again. Her boyfriend who was driving had no clue he missed out on the big payout $48K.

She has phoned numerous accountants about her CGT issue, cos its free when they think you may use them they provide plenty of info, I pay $130 when I phone my accountant , so I have it all wrong.

This women has never worked a day in her life as she has men supporting her lifestyle, oops that's right she also reads coffee cups, mmmm $80 for 10 minutes of utter rubbish, then there are those that need some good news.

Though I must admit she is busy between 12.00 -1.00 pm, Dr Phil, she keeps notes, this is the material she uses for counseling for those who have relationship issues, though she has never been successful at this. OMG, am I a nasty pasty, I think so

MTR

 

[wategos]

At least they caught her.. some capital gains and rental income are not detected if they are never included in tax returns. Common amongst foreign owners, I know of one who has been collecting tax free rent for over 15 years.

 

[cimbom]

Payment plan fine, but over 40 years??

I guess I am a little more than annoyed that we pay taxes and then you get these parasites that work the system and get whatever is available they make a career out of it.

Never heard of ATO seizing property.

I love how people get so worked up over some small fry dodging a few thousand dollars in taxes (if you can even call it that) while the real "parasites" pay less proportionally than someone on minimum wage

 

[Angel]

She "believes' she can get a payment plan. You haven't heard the ATO's side of the story yet. Perhaps she will get free publicity on Channel 9 when she complains that the evil ATO have repossessed her new house. Then you will feel better.

Maybe the free calls to her accountant and lawyer come with strings

 

[skater]

Maybe the ATO will take her $48k from her & let her pay the rest on a payment plan.

 

[S.T]

Why don't you just dob her in to the ATO if it concerns you that much?