Will Australian banks lend money for tax debt?

FinanceMortgage & Debt

  • Author Ray Ethell
  • Published November 7, 2022
  • Word count 518

Most Australian Banks will not approve loans to help you refinance your ATO tax debt. We can help you refinance your tax debt to put you back on the front foot, back in control.

What is a Tax Debt?

The tax debt or liability is the total amount of debt (money) a taxpayer or entity is legally obligated to pay the government as the result of the occurrence of a taxable event. Different taxable events command different tax liabilities and include, but are limited to:

The receipt of Annual Income (i.e. money)

All revenues derived from a business, less all expenses

The sale of an asset for profit (i.e. real estate, stocks, liens, a patent, accounts receivables, or a claim on debts), or

An inheritance of money or assets from an estate

How is a Tax Debt Recorded in Financial Statements?

The tax liability is recorded as a short-term liability in financial statements, and takes precedence over all other liabilities.

How are Tax Liabilities Incurred?

Tax liabilities are mostly incurred because; taxpayers (entities) are not setting aside enough cash (money) in the event of the following occurrences:

Large increase or decrease in earnings

Accountant errors, bookkeeper errors or tax planning errors

A change in the circumstances of a business

Unsound budgeting for tax obligations (i.e. accrued or assessed taxes)

Are you Able to pay your Tax Liability?

Every financial year you may be just like many other taxpayers or entities whereby you, find yourself in a situation, where you have not put aside the necessary cash to pay the tax liability you may owe to the government for any or all of the following taxes:

PAYG Tax

Goods and Services Tax

Business Tax

Fringe Benefits Tax, or

Capital Gains Tax

What Options do I have to pay my Tax Liability?

Like many other debt problems, tax liabilities will not go away. You may be able to arrange a “Payment Plan” with the ATO. However, the payment terms may or may not be suitable for you, because:

The ATO will usually require you to pay back the whole debt in 1-2 years and this can make your ATO payment structure plus your ongoing tax liabilities difficult to sustain

The ATO will usually not re-instigate a payment plan if you have missed any payments, even by one day

Can I refinance my home loan to pay my Tax Liability?

Yes, if you are unable to pay any of your tax liabilities, do not take tension. Simply contact a reputed brokerage firm. It will arrange a tax liability loan and ensure that the following actions are not taken against you by the Australian Taxation Office:

A Court Judgment

Outsource the debt owing to a debt collection agency, or

Even force you into Bankruptcy

So, this is how you can obtain tax debt loans and pay off your tax liability.

Are you worried about paying off your tax liability? Contact Non Conforming Loans and put all your worries to rest with tax debt loans. You can even obtain low rate commercial property loans to pay out your tax liability.

Ray Ethell offers a wealth of experience to his clients, gained from 20 years in the Finance industry, and prides himself on providing reliable customer focused service.

Visit our website: https://www.nonconformingloans.com.au/australia-non-conforming-lenders/

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