Under Section 260-5 of the Taxation Administration Act 1953, the ATO issues Garnishee Notices to companies (the taxpayer) to receive taxation amounts not paid on time. With the ATO responsible for collecting taxes from millions of individuals and businesses every year, compliance remains a major issue and Garnishee Notices are just one avenue for the authority to collect what is owed.
Of course, it is in the best interest of all parties to pay taxation amounts when due. However, many businesses find themselves in this difficult position due to cash flow issues or other financial situations.