Case Summary 1 - Cash Business

In this case, the family-run cash business was audited. The family members were working as subcontractors for the company that operated the business. As a result of the company audit, these family members also had their personal tax affairs audited.

Due to findings of fraud and tax evasion, the ATO were permitted to investigate as much as 12 years of this client’s financial history. The substantial tax debt included GST, Income Tax, Administrative Penalties, & Interest.

The client faced difficulties including an immense volume of critical evidence, such as Local & Foreign Bank Accounts, International Bank Transfers, Currency Conversions and Cash being brought into Australia from Overseas Sources.

There was an overall lack of a paper trail due to ‘family resource pooling’ and cash transactions.

Our Role

We acted as agent and representative for the client. We engaged our expert legal tax professionals, who specialize in ATO Disputes, to be the legal representative and conduct all legal work.

Outcome

Our legal team was able to settle the total debt for a significantly reduced amount (more than an 80% reduction). The client paid the reduced settlement amount and gained a full remission, obtaining a partial refund.

This matter was conducted using our interpreters. Our clients did not speak, read or write English.

Case Summary 2 - Bankruptcy Notice

In this case we acted as agent for a professional who was presented with a Bankruptcy Notice for a complex tax debt which included GST & Income Tax, Penalties, Interest (continually accruing), County Court Judgment debt, Penalty Interest charged on Judgment debt and Legal costs of the Commissioner of Taxation.

The ATO was in the process of issuing a Creditor’s Petition for over half a million dollars in the Federal Court. There was a very real risk that this matter would proceed to Court and result in loss of professional practicing certificate

Our Role

We acted as agent and representative for the client. We engaged our expert legal tax professionals, who specialize in ATO Disputes to be the legal representative and conduct all legal work. All submissions were initially rejected due to the client’s extremely poor compliance history but we persevered to try and help our client.

Outcome

Our legal team went through difficult negotiations with the ATO, and ultimately the matter was finalized with our client paying approximately one-fifth of the debt as a lump sum.

Our client avoided the stress (and embarrassment) of bankruptcy proceedings in the Federal Court, and from ongoing debt recovery action. We also enabled the client to continue practicing in their business.

Case Summary 3 - Tax Avoidance Proof of Funds from overseas by AUSTRAC

In this case, the director of the business had acquired butcher shops in Queensland after immigrating from New Zealand, and also bought a cattle business through which they were exporting to China. The ATO were investigating where the money came from to buy the businesses, and whether any funds came from overseas, as shown through Austrac. They required proof of contracts and had to trace what money came from overseas over the last 5 years.

Our Role

We assisted the Taxpayer in forming answers to all the complex questions the ATO raised, as well as providing Proof of Contracts and Overseas Proof of Funds Transferred. We helped the client put together Proof of Overseas Businesses and over 900 pages of bank statements, alongside other documents, which were presented to the ATO to satisfy their intricate enquiries.

Outcome

Our team was able to satisfy the ATO that all funds to buy the butcher shops and set up the cattle business came from the Taxpayer's Director’s funds and his father in China. This matter was conducted by our experienced analysts and consultants, one of whom is a former ATO Director of 35 years.

Case Summary 4 - Objection to Supperannuation Audit

In this case we acted as an agent for a client who struggled through COVID and was subjected to a superannuation audit which found a shortfall in super paid to the employees. As a result of the audit significant penalties, GIC and part 7 were raised against the company, which amounted to over $200,000. The actual shortfall super was only $23,000, but when penalties, GIC and part 7 were added, the debt escalated dramatically and the Taxpayer director was unable to pay as a lump sum.

Our Role

We acted as agents and representatives for the director, liaising with the ATO. Alongside our expert tax team who specialize in resolving ATO disputes, remittance of GIC, penalties and part 7 penalties we lodged an Objection against the Audit.

Outcome

Our team was able to settle the total debt with a more than 80% reduction, clearing the majority of superannuation penalties, GIC and part 7.

Case Summary 5 - General Interest Charges

In many cases we act as agent and representative for clients who have substantial tax debts with large amounts of GIC and penalties added to their tax account and integrated client account. New Line’s skillful staff have been able to negotiate a substantial reduction of GIC and penalties. We then assist clients in entering into a payment plan, whereby at the end of the plan the GIC that has accumulated on the account is 100% remitted.

Our Role

We have acted as agent and representative for clients, and have engaged our expert tax team to negotiate and mediate with the ATO to have the debt paid by lump sum or payment plan.

Outcome

Clients avoid going bankrupt and mitigate the risk of losing their home because our skilful team have been able to negotiate with the ATO for a reduced final settlement.