A measure of the July stimulus package provided that companies could store Covid`s tax debts, defer payment until their businesses were reopened, and then withdraw at reduced interest rates. Photo: Nick Bradshaw We will continue to work with The Treasury and Dener`s revenues on cash flow and tax administration and payment issues for companies affected by the COVID 19 pandemic, and we will update members on this site, on Twitter and in TaxFax. It is important not to put yourself in a situation where you cannot pay your current taxes. Your tax issues need to be updated while you are in the plan for a "phase payment arrangement." Otherwise, your AAE will be revoked and the sheriff will be appointed to remove full responsibility immediately. If you`re in trouble and your AAE is revoked, it`s unfortunately not just a matter of asking for a new AAE. The down payment for a second AAE can be increased to 40% of the total liability. The AAE1 invites you to discuss the periods for which returns are pending and you must also include a proposal. This proposal is particularly important because it not only contains a down payment, but you have to ask yourself how long you need to settle your debts and how much for monthly payments. You will be asked about the information and evidence regarding bank data, all the credits you have requested and all the promises of outstanding loans from the company.
In other cases where you have not paid or underpaid your tax, you can agree to a phased payment agreement. As a general rule, you must pay interest as well as the amount owed. For more information on how to approach revenue in the event of tax problems, see the guidelines on progressive payment agreements. There is a certain part of the PPA1 form that we found, people can launch because they do not know how to fill it out. Revenue wants to know how you will pay your debts while maintaining your business while paying your current taxes. At the end of the day, they try to judge the viability of your business. This is because, under the terms of the AAE, you can keep all your current taxes up to date. If you don`t pay your current taxes or miss one of your payments, the income should not continue with the AAE and this can be the beginning of a rapid downward spiral if it is mismanaged. A fantastic advantage of the AAE, which does not recognize many people, is that it allows you to invest and bank credit because you are no longer compliant. Once you have tracked your payments, you can obtain a tax registration certificate with an AEA in arrears. This can be of great use to a company that wants to act on a problem.
This was very helpful for one of our clients, who relied on pobal funding to run his nursery. In the absence of a tax payment, they were found to be non-compliant by Le Revenue and the subsidy ceased to be paid to the company. By applying for an AAE, they were able to prevent their business from expiring because once they wanted to make regular payments to pay off their debts and keep up with the current payments, they were able to reissue a tax registration certificate and re-apply for financing! The judicial service accepts cash, cheques, bank transfers or postal orders. If you pay by mail, you can use one of these methods or pay by credit or debit card. A courier accepts payments over the phone or the Internet, as well as at post offices. The reduced interest rate of 3% per annum for non-COVID-19 tax debts applies when the subjects enter into a staggered payment agreement with the generalcollector before September 30, 2020.