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Sure it will come at a price but do you have any ability to engage with KPMG based on any documentation prepared by them that you have relied upon?
It's always a danger when contracting that you can prove that you are a bonafide contractor and not part of an elaborate scheme to avoid paying statutory entitlements & employer obligations ie payroll & PAYG tax, super, workers compensation holiday leave, sickies, RDOs, long service etc.
They will apply a control test (could you outsource your work to others? Were you doing work for other (not related) companies or was this your sole provider? (if you have other similar contracts or simultaneous contracts all the better).
Hi Scott,
I had to go through these management companies due to the fact that the larger institutions I work with no longer allow for direct relationships for contracting. You have to go through a 'prefered supplier' and to get on that list cost a lot of money. It was more cost effective to go via a management company. They never found me work but set up my structures and handled my bookwork, tax returns etc.
A lot of my contracts have either been over a 12 month period or start out as six month and then get extended as the projects drag on. I don't really have multiple contract at a time as the main ones are quite large and require full engagement.
The hard thing to accept is that no other entity see's me as an employee. Certainly not the companies I contract to as I'm not entitled to sick pay, holiday pay. long service or super. The banks also treat me as self emplyed as do insurance agencies. It seems the only ones to say i'm an employee are the ATO.
It's a real no win situation and doesn't seem fair. (but lifes not is it?) I'm an IT guy so relied on the info from business and tax professionals however now the ATO have stung me!
Interest rate is a general penalty rate as determined by the ATO. I can't remember the figures.
There may be different rules as to deductibility. I seem to remember I would have been better off tax wise by taking the ATO option- but that was some years ago. Get advice.
I'm wondering about a strategy to pay of some of the debt via a credit card and then transfering that amount to 0% credit card over 16 months? Is this even feasable?
I will be going via my accountant to work out a plan but wondered if anyone has thoughts on this??
The general interest charge is currently 9.69%
Does anyone know of Accountants or tax lawyers specialising in this area? While my accountant is working with the ATO at the moment I wouldn't mind some 2nd opinions.
If I'd have got a 2nd opinion 5 years ago I may not be in this mess!
Thanks again for all the replies.
Thanks for the feedback.
Can anyone PM me a recommendation for a broker that may be able to assist with this financial hurdle I'm trying to jump?
Cheers
Best to approach ATO to pay debt in installments. As long as you pay debt as agreed by both parties, you shouldn't have any trouble.
if they don't let you pay debt in installment, there is always an option to go to court. I am sure judge will look at your financial hardship (selling PPOR to pay to ATO)
Also, dont be afraid to take the matter to court, you can represent yourself. just stay strong and you will get there.
You really will be bankrupt if you do this in court....ATO has huge resources and will kill you with legal costs.