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ATO ramps up collection of tax debts

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ATO ramps up collection of tax debts

The ATO are recommencing the use of an external debt collection agency for overdue tax debts.
From 29 January 2024, external debt collection agency Recoveriescorp will be actioning tax debt cases that have been referred to them by the ATO. This will occur when taxpayers have not responded to the ATO’s previous contact attempts and are not engaging with them to pay their debt.

 

Verify contact

If you are contacted by Recoveriescorp, you can verify the contact by calling them directly on 1300 323 495. This phone number is listed on the ATO’s website, alongside further information on verifying and reporting suspected tax related scams.

If you are referred to Recoveriescorp, your debt will remain payable to the ATO. If Recoveriescorp set up a payment plan, it will be managed by them until the debt is paid off in full. There are no additional penalties for debts referred to Recoveriescorp.

 

Assistance available

There is support available if you are experiencing financial difficulties.

If you need any assistance with any ATO debts, please do not hesitate to contact your Pitcher Partners advisor for assistance.

 

About Recoveriescorp

• Recoveriescorp is not engaged on a commission basis and there are no incentives offered for debt collection outcomes.
• They won’t undertake any firmer actions like garnishees, issuing of Director Penalty Notices, disclosure of business tax debts, legal actions, or insolvency.
• Their staff have limited access to ATO systems. They will only be able to update contact details and have read access for client account information. This access will ensure a better client experience as the external collection agency will have up to date information, including debt balances.
• They are held to strict quality assurance, governance checks and privacy controls to protect taxpayers. The staff are subject to pre-engagement integrity checks in alignment with internal onboarding requirements.

 

Here to help

We are here to help with any issues relating to the ATO. If you require assistance, please do not hesitate to get in contact with your advisor.

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