Tax Commissioner Michael D’Ascenzo has revealed a sharp rise in liquidations and bankruptcies as the downturn stretches taxpayers – and the Australian Taxation Office.
D’Ascenzo told a federal parliamentary committee in Brisbane the tax office has received a sharp increase in hardship provision claims over the past 12 months.
Bankruptcies have increased by 5.9% in the past 12 months while liquidations have climbed 18% in total.
He said the tax office initiated bankruptcies in 2.5% of all bankruptcy cases, and 8.3% of total liquidation cases.
D’Ascenzo revealed the tax office is also struggling with the downturn. It did not renew the contracts of 203 workers in the past 12 months, and is also struggling to maintain its responsiveness under its tight budget.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
