Stopping trade does not settle the tax account or end every company obligation. Reconcile the debt and unfinished reporting, then obtain advice on the appropriate closure process and separate director issues.
Corporate Recovery Partners
01 / 06
The shop closes but the tax letters continue
A retail company sells its remaining stock and shuts the premises. The owner cancels some services and assumes the remaining tax balance can be dealt with later. A new ATO letter arrives while records are being packed away, showing why operational closure and legal completion need separate attention.
Ask the accountant or registered tax agent to identify outstanding lodgments, balances and adjustments. Keep the underlying sales, payroll and bank records accessible. Closing the accounting subscription before preserving records can make reconciliation harder.
Separate verified debt from estimates and disputed entries. Identify who is authorised to deal with correspondence and maintain reliable contact details throughout the closure.
ASIC states that registered companies retain obligations even when no longer trading and directs insolvent companies to qualified advice. Ask whether the proposed closure route is appropriate given the actual debts and assets.
Do not assume ordinary deregistration is available or that removing a business name erases company liabilities. The accountant, lawyer or registered liquidator should assess the position before documents are lodged.
Give advisers any director penalty notice, guarantee or other personal demand. Company tax debt and a director's personal position are related questions that should not be collapsed into one account balance.
Avoid promising that liquidation automatically removes every personal issue. Have the actual notices, reporting history and payments assessed while continuing to cooperate with the company process.
Record outstanding tasks, responsible advisers and where documents will be held. Include customer refunds, employee matters and remaining creditor correspondence so tax work is not isolated from the rest of the business closure.
Preserve the authority and payment trail for any asset sale. If funds are insufficient, obtain advice about their treatment rather than paying whichever creditor contacts the owner last.
