29 Aug 1414
On appropriation of refunds against debts not yet due
MEMBER 122 writes:
"Cleary the ATO are all about collecting tax debt from small business taxpayers.
I have a client who was entitled to a 2014 company refund. The refund was processed and effective from 15 August 2014, however, the ATO computer system immediately withheld an amount and applied it to the integrated client account, even though the IAS for July was not due until 21 August 2014. I understand the Commissioner has the power to withhold a refund if there is a debt but in my client’s case the debt was not due until nearly a week after the company tax refund was issued. In the meantime the client had actually paid this IAS on the 20 August, so now there is a credit in the account.
After spending at least two hours on the phone to various departments and having to ask to be put through to supervisors, I requested the moneys to be transferred ASAP but as one rude supervisor advised me, 'this will not happen'. Apparently is still takes the ATO computer 4-5 business days to be able to return the moneys to the client. What a load of!!!!
No concern from the ATO that my client desperately needs to pay their workers and they can just wait until the ATO computer system can process. Another day wasted with our unfriendly staff at the ATO!"