Tax Debt Loan

A tax debt doesn’t have to be an overwhelming or ongoing problem. By working closely with you to tailor the right solution for your circumstances, the team at NWC Finance can help you settle your tax debt once and for all.

We can speak to the ATO on your behalf to save you time and stress, negotiate a reduction in your tax, assist you with a plan, and arrange a tax debt loan to help you avoid further penalties or fines.
It is important to know that tax debts on your creditor file can significantly reduce your credit rating and the number of banks or lenders who will provide funds to you.
Most banks and lenders have a strict policy against lending or refinancing loans for someone who has an outstanding tax debt. Reasons for this are:

• Sign of bad character
  If someone fails to lodge tax returns or repay their tax debts it shows mismanagement of finances and lack of intention to repay their debts in general.

• Sign of financial distress
  Trying to refinance tax debts demonstrates instability in management of debts. It raises questions on the credibility of one’s ability to repay the debt back, through your demonstrated financial hardship.

• Repeat problems
  Often offenders can become repeat offenders. People with tax debts have a higher chance of obtaining further tax debts or financial distress.

• Security concerns
  If a property is sold, a bank’s mortgage is repaid before the tax debt. However, some instances occur where the ATO makes a claim for the outstanding tax debt from the sale proceeds of a property. This poses risk to the banks and lenders who could make a loss.