I received an ATO wind up? If my business closes, the ATO will get no money. Why?

 Will ATO bankrupt me?
April 23, 2020
Can finance be obtained with bad credit?
April 23, 2020

The ATO has several mandates under their taxation provisions. As a result, if you don’t pay tax or manage your obligations:

  • Firstly, the ATO sees your business as causing a non-competitive environment of trade and will close your business.
  • Secondly, closing or winding up your business moves the revenue to a competitor. As a result, taxes start coming in from that business.
  • Thirdly, the ATO removes your business it brings competition back into your market space. i.e. the new business charges appropriately for services with consideration to the tax payable.
  • Finally, the sale of assets using Business Liquidation and director bankruptcy forces the recovery of lost taxes.