Australian Taxation Office targets 22,000 taxpayers over $11 billion in unpaid debt

The Australian Taxation Office (ATO) has warned 22,000 taxpayers who collectively owe $11 billion that it will step up enforcement as it seeks to recover a growing pool of unpaid tax. According to 9News, ATO Commissioner Rob Heferen told the Tax Institute on Thursday that outstanding collectible debt has now reached $50 billion, most of which is undisputed and self-reported. “This debt is not disputed, most of it has been self-reported, and a significant portion is made up of amounts that have been withheld from employees’ wages, or collected from consumers as GST – but not passed on to gove

The Australian Taxation Office (ATO) has warned 22,000 taxpayers who collectively owe $11 billion that it will step up enforcement as it seeks to recover a growing pool of unpaid tax. According to 9News, ATO Commissioner Rob Heferen told the Tax Institute on Thursday that outstanding collectible debt has now reached $50 billion, most of which is undisputed and self-reported. “This debt is not disputed, most of it has been self-reported, and a significant portion is made up of amounts that have been withheld from employees’ wages, or collected from consumers as GST – but not passed on to government,” Heferen said. “While the majority of tax is paid on time – about 90 per cent – in dollar terms, there is a significant amount that isn’t.” The 22,000 individuals and businesses represent just 1% of those in debt to the ATO but account for roughly 20% of the total, or about $500,000 each on average. Heferen said the tax office would deploy “every tool available” to recover the money, including statutory demands, company wind-ups, director penalty notices, garnishee orders and even departure prohibition orders preventing people from leaving the country. The $50 billion in unpaid tax is almost equivalent to Australia’s annual defence budget, while the $11 billion owed by the top 22,000 debtors exceeds combined government spending on recent key election pledges such as expanded Medicare bulk-billing and temporary energy bill rebates. Heferen also provided an update on the current tax return season. With the October 31 deadline approaching, more than 6.1 million tax returns have been lodged so far, generating 4.5 million refunds worth a total of $12 billion. The average refund issued to date is $2,639.