“A failure to respond to a statutory demand can have very serious consequences for a company. In particular, it may result in the company being placed in liquidation and control of the company passing to the liquidator of the company.”

What would you do if you saw the notice above in a box prominently displayed at the top of a document addressed to your company claiming that money is due and owing and specifying that you take urgent action within 21 days?

The Tax Office (ATO) has received significant media attention recently and continues to feature regularly as an applicant in many of the ‘Winding Up’ proceedings before the Courts.  The majority of these proceedings are reflective of an aggressive strategy by the ATO to take strong action to recover outstanding debts.