Tax debts of a deceased person

By Tim Lynch

If a deceased person has an unpaid tax debt that is overdue or likely to fall due before a grant of representation (probate or letters of administration) you can notify ATO of the death Notification of a deceased person | Australian Taxation Office and then pay the tax debt after obtaining a grant of probate or letters of administration.

The ATO will generally waive interest on a tax debt that accrues between the date of death and the date that is 28 days after the grant of probate or letters of administration – PS LA 2011/12.

The ATO may also waive interest accrued before or after that period if the estate can show that assets were realised promptly and funds were not available prior to the date of payment.

Disclaimer

The above does not constitute legal advice, but is information which may be of general interest. Beswick Lynch Lawyers will not be held liable or responsible for any claim, which is made as a result of any person relying upon the information contained in this publication.