eWombat Search

Latest Accounting News
Hot Issues
Our website is really our digital office.
‘Substantiation will be a key focus’: ATO drums in tax time 2018 hit list
Super changes: $1.6 million transfer balance cap and death benefit pensions
Payroll, compliance issues top dodgy practices in Aussie business
Employee travel expense deductions
The Goldilocks effect - Economic and market update 4Q 17
Tax assessments confirmed for undisclosed business income
Super returns on the up despite clients’ hesitation
Australia. All you need to know to be the expert.
Business confidence hits 5-month high: NAB
Caution advised on best interests duty with cryptocurrencies
$20,000 asset write-off renewed for another financial year.
SMSF compliance traps with bitcoin
Where Australia is at. Our leading indicators.
Foreign resident CGT withholding: early recognition of tax credit
ATO set to doorknock as 60% of cash-heavy businesses caught
New downsizing cap available
Capital Gains and Renounceable Rights
Treasury finds Australia 'increasingly uncompetitive' as US moves on tax plans
Australia's vital statistics
Our Advent calendar for 2017
Articles archive
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2017
‘Bank-like heists’ make way for new wave of cyber crime
ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
SMSF trustees told to take action on contributions
Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Does your business import or export goods and services?
Federal Budget - 2017-18 - Budget documents
When does an asset cost less than $20,000? Depreciating assets: composite items
ATO finalises guidance for capped defined income streams
Warning on trap with trust deed updates
2011 Census - what was the make up of your area?
It’s no secret that Australians have some of the largest houses in the world.
Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
FBT Reminder – Odometer Reading
ATO on 'aggressive' debt recovery hunt
More ATO downtime looms ahead of tax time
Tax debt release applications refused
Troublesome tax system overhaul picks up speed
Government to ‘put to bed’ uncertainties with TRIS
Travel expense and transport of bulky tools claim denied
New law sheds light on global tax issues
Report tips housing price spikes to wipe out super savings
ATO on 'aggressive' debt recovery hunt

The ATO is showing no signs of easing up on its crackdown on companies owing money and pushing them into insolvency if required, with one mid-tier firm citing a recent spike in insolvencies



Last week, solvency and forensic accounting firm Worrells released The Worrells Insolvency Report 2015-16. 

Looking back over the last 10 years, the report showed that the total number of insolvencies in Australia spiked in 2008-09 as a result of the GFC. After remaining steadily high through to 2012-13, the number of insolvencies dropped in 2014-15.

Now, interestingly, the numbers are beginning to spike again, and this is because of the ATO’s crackdown on debt according to Worrells partner Chris Cook.

“There are businesses out there that, if left to their own devices, just sit there in no man’s land with debt owing. So there are businesses, as unfortunate as it is, that sometimes need to look at liquidation as an alternative,” Mr Cook told Accountants Daily.

“The ATO is certainly a lot more aggressive than they used to be, they're a more active debt collector than they used to be. I don't see that necessarily as a bad thing, as long as they are compassionate to the businesses.”

The report showed that the number of applications the ATO lodged with the Federal Court of Australia to wind up a company increased dramatically in May 2015, signalling the beginning of their crackdown.

“The number goes up from April to May [2015] from around 100 up to about 550,” Mr Cook said.

“From there it stays fairly high for six months, then it goes up and down a little bit, and then in June last year, which is where our data finishes for the purposes of this report, it finishes at about 300.”

While the data from June 2016 isn’t available yet, Mr Cook said that the ATO is far from done with its crackdown.

“The ATO is not slowing down at this stage and to be fair, sometimes that needs to happen,” he said.

“I don’t think this is a short term thing. I think the ATO is going to continue with this aggressive debt collection campaign, and I don’t believe that's a bad thing, as long as it’s done properly.”


Wednesday, 22 March 2017


Stapleton Group: 83a Boronia Road Boronia VIC 3155 | Phone: (03) 9760 7800 | Fax: (03) 9760 7860