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What is the effect of an ATO Garnishee Notice?

Question

What is the effect of an ATO Garnishee Notice?

Answer

An ATO Garnishee Notice is a notice which the ATO may issue to a party that owes money to a company. The effect of this notice is that the party must pay the amount owed to the ATO instead of to the company. This can have a devastating effect on the company's cash flow and highlights why professional assistance should be sought if a company is unable to meet its obligations to the ATO.

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