Facing difficulties meeting obligations: Financial difficulties
Your options during financial difficulty
The best way to make your tax payments is to plan ahead for them so you can pay the full amount on time. See the "Tax due date calculator" under "Work it out" for the return due dates that apply to your organisation.
There are a range of options available for paying amounts due. If you're unable to pay the full amount on time, you should contact us as soon as possible. You don't have to wait until the due date has passed.
We'll discuss your current circumstances and help you determine the best option for dealing with the amount due. We'll look at your current situation, your payment history, and your ability to meet future obligations. When looking at your individual case we'll follow established guidelines.
Options for payment are:
- Payment in full.
- An instalment arrangement where you repay an agreed amount over time.
- Writing off an agreed amount if we determine that full payment would cause you serious hardship.
- A combination of an instalment arrangement and a serious hardship write-off.
We may need further information from you to determine the best options for you.
If you think you can't pay by the due date
Contact us before the due date to let us know about your financial difficulties. Penalties and interest apply to tax bills that are unpaid by the due date. If your financial situation prevents you from paying on time, we may be able to set up an instalment payment arrangement.
If we agree to an instalment arrangement, any penalties charged up to the date of the arrangement will stand, but further penalties won't apply as long as you keep to the terms of the arrangement. If you contact us and make a formal arrangement before the due date, you'll only be charged one late payment penalty of 1%. We'll calculate the estimated interest payable on the amount of the arrangement and then include it with the instalment arrangement we set up.
| Note | |
|---|---|
| Interest will still be payable from the date the debt became outstanding and throughout the term of the arrangement. It may work out cheaper for you to borrow money or sell an asset to pay the debt. | |
If the due date has passed and you have an unpaid tax bill
If you make an arrangement after the due date, any penalties already charged will stand. If you meet all of your obligations under the arrangement, no further penalties will be charged, however, use of money interest continues to be charged.
For more information on penalties see "Penalties and interest" from the left-hand menu.
Negotiation period
In some instances we may need further information from you to determine the best payment option. This may require you to phone us back, complete a form, or file a return. You'll be given a specific timeframe to provide the information. During this time, we won't impose further late payment penalties or take any new steps to recover the debt. We'll only start other recovery actions, if we're unable to reach an agreement during the negotiation period. Use of money interest will continue to be charged during negotiations.
To discuss payment options, please contact us on our Overdue tax and returns line.
Date published: 08 May 2006
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