Here's my situation:
My questions are:
- I have an income tax balance liability, which I need to repay by 1. August.
- I am expecting an income tax refund for the past financial year (2018), the refund won't cover the liability fully, there will be a couple of hundred dollars left as liability, which won't present a problem in repaying.
- I have a debt with a financial institution, which I cannot manage to repay. That is my real headache and reason for going down the bankruptcy path.
My questions are:
- Will the balance of my income tax liability be 'cleared'? Or frozen until the end of bankruptcy, and then becomes subject for collection -again-?
- What happens to the income tax refund for 2018? Will the ATO offset the refund? Or will they actually refund the amount? I don't have the income tax return ready for lodgment just yet. I should mention that ATO is aware of a possible refund.