Jmc87

Hi, I have to move back to the uk due to unforeseen circumstances. I currently owe the ato around $9000 in a tax debt. I am in a payment plan with them. if I stop paying this when I move back to the uk does anybody know what is likely to happen? I never intend on coming back to Australia.

Thanks

Amazulu

I don't know but one thing I do know - from experience - is that the ATO and Inland Revenue are as thick as thieves. They share a lot of information

Good luck

Beoz

Inland Revenue were heavily chasing a guy who used to live in the house I rented in Sydney even though we continually sent the mail back to IR.

..... and the ATO are more persistent than Inland Revenue.

I suspect the world has no boundaries when it comes to tax debt.

Stu Ward

You owe the money, pay it back

Jmc87

Thanks for your helpful input

Beoz

Effectively you will be cheating a lot of people on BE, those who are residence of Australia, $9000 that could contribute towards health, education and the like.

Probably should just pay it rather than thinking about No. 1

old.sparkles

If you are currently on a payment plan, speak to ATO and let them know your circumstances - you can probably continue to pay by instalments when you leave.

You may have no plans currently to return but you never know what the future brings so best not to burn bridges

Jmc87

Yes I see what you are saying Beoz but if I had the money I would pay it no problem, I was told by my Australian employer that he was paying my tax however it turns out he didn't. As for cheating Australian residents your right, however do you have any idea how many people get paid cash in this country? $9000 is a drop in the ocean in comparison.

Beoz

It is a drop and its unfortunate that you misunderstood what was happening with your tax affairs. Its also unfortunate when trusted accountants screw up leaving their clients with hefty tax bills (been there done that). Unfortunately for all us tax is a personal responsibility and certainly not the responsibility of the other tax payers to cover your cost, just because you 'don't have the money'.

Perhaps you could have the employer pay the interest on your loan for the repayments if you feel they said one thing and did another.

And if you are not working a full financial year, perhaps you are entitled to a tax return. But since you are bring paid cash it might not be an option.

Techno Freak

This post just got me thinking, (as I've worked for a few shonkies that have gone to the wall over the years). Hypothetically speaking, you get your payslip every week/month and receive your net pay to your bank. Payslip shows how much tax you've "paid".

What happens if your employer isn't forwarding the tax to the ATO? The first you hear about it is at the end of year when you do your returns I guess.

Then the employer says "whoops" I'm skint, call in the liquidators.

Who's responsible for the tax that never got paid to the ATO? Do they come after you personally for it, or try and get it out of what may (or likely may not) be left in the company?

Am I just being paranoid? Or should people be periodically calling the tax office to make sure their employer is paying your tax?

Red_V_Roger

I think it is still the employers responsibility. That is why the ATO is a preferential creditor when a company goes bust - i.e. they recover what they can first. Don't forget that most companies in Oz have to do BAS statements every month or three months to the ATO, so it is less likely they can run up the big debts associated with only reporting yearly.

spouse of scouse

If your employer refuses to give you your group certificate/payment summary, you can still complete a tax return (and in fact, must) - use your payslips with the amount of tax deducted as a basis for your calculations. Send in your payslips as supporting documents, let the ATO know that your employer refused to provide you with your group certificate/payment summary, and then you're in the clear. It would then be up to the ATO to chase your employer.

I'd be more worried that an employer who didn't forward tax withheld to the ATO would also be unlikely to pay your superannuation. People who work for cash sometimes miss this point - they're not only missing out on legal and financial protection in the event of a work injury, paid sick leave and paid holidays, they're also not getting any super.

Techno Freak

Which is exactly what happened to me. Employer wasn't paying his tax, or my Super (or my wages come the very end!). Yet we were still getting group certificates. My last pays wage and all my holiday entitlements were paid out by what was GEERS at the time (after a 2 year battle with them on appeal for firstly refusing payout), but they don't cover unpaid Super, that simply disappears unless there is anything left in the pot when the vultures, I mean administrators, have finished. This was a reputable company too, not cash-in-hand work. I'd been there about 3 years. I'm pretty sure he was paying employees tax, just his other taxes he'd skipped out on which made me wonder what would have happened if he hadn't been forwarding our PAYG tax too.