Business Case Studies
This client was operating as a Sole Trader and had trouble getting paid for some jobs that he had done in the past. He had not lodged a tax return for 3 years as he found it tough to make ends meet. He was hoping to be able to improve his business and planned to contact the Tax Department when he had sufficient funds to cover his tax obligations. The business did not improve sufficiently and the stress for him became too much. His health and relationship suffered.
He was preoccupied with the idea that he would be convicted for tax evasion. Considering that he had never planned to evade his tax obligations, A1 Debt Assistance reassured him that his would not happen. At this point it was critical to produce an estimate of the amount of tax owed and include it in his bankruptcy. He also had to include all of his other debts, which included 5 credit cards, 12 suppliers and a car loan. He had the choice to keep the car and continue with the payments or surrender the car and include the full amount that was owed in the bankruptcy. As he had no further debts, he was now in a position to keep the car and maintain the payments. He also found that with the lowered overheads, his business was actually making a good income – so he was able to continue trading in the business and get a fresh start. His taxes were written off, the stress disappeared and he could again focus on building his business without the pressure of the old debts.