The capacity to pay refers to an individual or entity's ability to fulfill financial obligations, such as taxes or debts, based on their income, assets, and overall financial situation. This concept is often used in tax assessment to ensure fairness and equity in the distribution of tax burdens. For the Australian Taxation Office (ATO), the capacity to pay is a key factor when determining payment arrangements, penalties,capacity to pay ato or relief measures.
The capacity to pay refers to an individual or entity's ability to fulfill financial obligations, such as taxes or debts, based on their income, assets, and overall financial situation. This concept is often used in tax assessment to ensure fairness and equity in the distribution of tax burdens. For the Australian Taxation Office (ATO), the capacity to pay is a key factor when determining payment arrangements, penalties,capacity to pay ato or relief measures.