If you don’t pay your Tax debt, or enter an arrangement to pay, the ATO will begin recovery action. The recovery process is as follows:

  • Letters of demand
  • Referral to debt collection
  • Court proceedings
  • Creditor Petition / Bankruptcy

General Interest Charge will accrue from the due date until the amount is fully paid.  Legal action can be implemented and an external collection agency may also be involved to collect outstanding tax. Finally the ATO can bankrupt you to obtain payment.