The ATO has been pushed to wipe accumulated interest on old debts that people weren’t even aware of, after it issued unexpected letters that distressed many Australians.
The tax watchdog has urged the Australian Taxation Office to wipe accumulated interest on old debts that people weren’t even aware of, after the tax office issued unexpected letters that distressed many Australians.
“The commissioner has the power to remit any general interest charge, which has the effect of waiving the interest component of any debt,” Payne told this masthead.“It would be fair, in circumstances where you haven’t been advising taxpayers that the debt in fact exists, for there to be a policy around remission of that general interest charge.”Following community backlash, the ATO paused the letter campaign in late November and said it was reviewing its approach.
“ was cautioned against doing a bulk communication mail-out … some people are getting letters saying, ‘You owe 20 cents’,” said Payne.
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