I'm a discharged bankrupt and the ATO was 1 of my listed creditors, and at the moment, the ATO hasn't extinguished any of my accounts. They have only written off the debt. Is it true that tax debts are extinguished?
A debt owed to the Australian Tax Office is released on bankruptcy, but the Tax Commissioner has the power to issue a Statutory Garnishee over wages. If the statutory garnishee is issued prior to the date of bankruptcy, it will not be released.