QLD Filing for Bankruptcy - Discharged of GST Debt?

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28 November 2016

My business failed a while back and I am left with substantial debts to the ATO comprised of Income Tax debt including penalties and interest, and substantial GST debts arising from my sole trader status. These debts arose from my own failure and poor compliance which I am now working hard to turn this around.

However, the debts to the ATO are simply insurmountable and ATO has rejected all my requests associated with this debt.

I now have to consider voluntary bankruptcy.

I understand that all "finalised" income tax debt would be discharged under such bankruptcy. However, I am unclear whether that would include the penalties and interest, or the separate GST debt.

Appreciate it if anyone can provide information on this.

Victoria S

Well-Known Member
9 April 2014
Income tax debts incurred to QTO before date of bankruptcy are included in / extinguished by the bankruptcy. I believe GST debts are also. Penalties or fines imposed by a court are not provable in bankruptcy however I don't know whether the situation is different with regard to ATO imposed fines and penalties. Perhaps you could enquire directly with the ATO.