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Successfully Resolving Tax Debt Issues for a Retired Business Owner


When faced with a tax debt, individuals or businesses not only have to deal with high interest and penalties, but also constant phone calls and letters from the tax authority, and even legal action. In such situations, it can be overwhelming to know how to handle the situation. However, with the help of an experienced team, clients can find relief from their tax debt worries. This case study showcases how the Ysquared team helped a retired business owner overcome a significant tax debt issue.



Mr. Wang, a retired business owner, faced an issue with Goods and Services Tax (GST) declaration errors made by his company due to his lack of experience and numerous bank accounts. After the tax audit, it was determined that Mr. Wang's company needed to pay and refund $60,000 in tax and penalties. However, as a retiree with health issues, Mr. Wang was unable to pay the tax and penalties. This led to regular debt collection calls and increasing interest and penalties.



Mr. Wang initially consulted with a liquidator to liquidate his company as a way to avoid paying the tax debt. However, he found out that the process was cumbersome and expensive, and would also negatively impact his personal credit rating.



Mr. Wang then turned to Ysquared for help. After a thorough assessment of his situation, the tax experts suggested negotiating with the tax authority for debt reduction. They explained Mr. Wang's personal and company circumstances and applied relevant tax laws while providing supporting documentation to the tax authority.



After several rounds of negotiation, the team successfully reached an agreement with the tax authority to fully waive the $60,000 in tax and penalties. The tax debt amount in Mr. Wang's company's MyIR system was also reduced to zero, and he no longer needed to pay any tax debt.



Ysquared's experienced team of tax experts successfully helped a retired business owner with a significant tax debt issue. Their strategy of negotiating with the tax authority, explaining the client's situation, and providing supporting documentation led to a complete waiver of the tax debt and penalties. This case study demonstrates the importance of seeking professional help when dealing with tax debt and shows that successful resolution is possible through careful strategy and negotiation.


Chinese translation

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