Keep the garnishee correspondence for each company separate

A shared office can blur separate tax matters

Several companies may use the same bookkeeper, address and management team. When a garnishee-related message arrives, identify the taxpayer and affected records before circulating instructions. A group-wide email saying the ATO has taken the money can leave staff changing the wrong forecast or assuming that every company faces the same notice.

Create a factual notice index

Imagine a construction group with a trading company and a separate plant-hire company. Record the exact entity, notice date, recipient and reference shown on each document. Store the document securely and ask the tax adviser to explain any uncertainty. Do not use a familiar trading name as a substitute for checking the entity details.

Preserve the documents properly

business.gov.au advises keeping financial records secure and backed up. Give authorised staff access to the relevant file while protecting sensitive tax information. Keep earlier correspondence rather than replacing it with the newest attachment. An adviser may need the sequence to understand what was requested, what was answered and what remains unresolved.

Source: business.gov.au: Record keeping

Separate the cash impact

Show which company's expected receipt or account movement is affected. Ask the accountant to check intercompany entries if funds are normally managed through a central arrangement. Do not move money between entities to avoid a notice. The task is to describe the position accurately and obtain advice, not to devise a new payment route around collection action.

Record instructions precisely

After an adviser or ATO discussion, record who spoke, the relevant reference and what was actually confirmed. Distinguish a request for review from an agreed change. In the construction group, a discussion about one company's notice should not be marked as resolving the other company's issue. Send written outcomes to the people maintaining those records.

Review unresolved items together

Use the index to identify missing documents, unexplained transactions and questions still awaiting an answer. Assign responsibility for following them up. Keep legal and tax advice current as circumstances change. Clear separation of the files helps the group respond promptly while avoiding assumptions based on a notice addressed to a different taxpayer.