A recent article on ABC showed that the ATO is owed more than $35 Billion by business and this has grown by nearly 10% in the last year.
The inspector-general’s figures show that small businesses are the main offenders for late payment, with 60 per cent of collectible debts ($20.3 Billion) within this sector and the main offenders are micro businesses with turnovers of less than $500,000 making up three-quarters of the small business debt.
These are quite frightening statistics, in our experience this is caused by small business not knowing or understanding their numbers and unknowingly using the Tax man to fund losses. This is why we encourage you to keep accounts up to date and on top of your numbers. The devil is in the detail.
If you need help in this area, please don’t hesitate to contact us.