ATO Tax Debt
A loan to assist individuals or businesses to pay off overdue tax obligations to the Australian Taxation Office.
ASCF can offer ATO tax debt loans to borrowers to help them reduce or fully repay their outstanding GST or tax debt and avoid the General Interest Charge (GIC) on late payments, which compounds daily and is not tax-deductible.
In some circumstances, an ATO tax debt loan may also help businesses avoid legal action, a garnishee notice, freezing of the business bank account, or further actions like liquidation or bankruptcy.
If an ASCF ATO tax debt loan is used to repay a tax debt for business purposes, the interest charged on the loan may be tax-deductible, though we recommend consulting a registered tax professional to confirm this for your specific circumstances.
Below is an example of how ASCF assisted a previous borrower with an ATO tax debt loan:
What is an ATO Tax Debt?
Benefit Title
Benefit Description
Case Study
When a business owner needed urgent funding to cover working capital and settle outstanding tax debt, ASCF delivered a tailored solution to keep operations running smoothly.
Exit
The customer intends to refinance through their current business bank, which he will do without having a debt to the ATO.
Solution
We offered a tailored solution to the borrower, which was secured by a second mortgage over his home in Subiaco, Perth. The loan was for $300,000 at an LVR of 68.45% for a 6-month term (after accounting for the first mortgage debt).
Problem
One of our valued referrers presented us with a borrower seeking funding to assist with his business's working capital while also clearing some outstanding tax debt. The customer had the opportunity to secure a significant discount from a supplier by paying upfront rather than taking advantage of payment terms, and also wanted to clear up his outstanding tax debt, as his existing lender would not provide him with additional financing with a tax debt in place.