Hello Chasers,
If you are expecting a nice size tax refund or GST credit be prepared to be disappointed if you also owe the Tax Office!
The ATO has reached out to small businesses who may have recently received a letter advising that they have a debt on hold and that any credits or refunds would be offset against this debt.
As a result, such a small business may find that their refund or credit is less than expected.
NOTE: The ATO has advised that this process of offsetting refunds or credits was temporarily paused due to the pandemic and its financial impact on taxpayers. However, the ATO has restarted offsetting refunds and credits to pay off debts on hold since June 2022.
The ATO also sent out ‘awareness letters’ to some not-for-profits and individuals in September 2022, similarly advising them they had a debt on hold and that any credits or refunds would be offset against this debt.
Read more of our daily blogs in our Chasing the Dream Facebook Community
