ATO debt & company bankruptcy

[Debra Robertson]

I was the sole company director for a company that has since closed due to a severe downturn in business. I have reverted back to being a sole trader
The company has a tax debt which I cannot pay (approx.. $80k) The company has no other debtors and no assets. There were no employees except myself.
The ATO are demanding payment.
What are the ramifications of declaring the company bankrupt and what are the costs to do this?

 

[James Mahoney]

Hi Debra,

If the company is insolvent (unable to pay its debts as and when they fall due), then you ought to place the company into liquidation.

You will need to speak to an insolvency practitioner in order to achieve this.