Brindabella Christian College will be unable to "extinguish" its multi-million dollar tax debt as suggested by its board chair.
It is also unclear as to whether it is meeting conditions on its financial management and governance as agreed with the federal education minister following regulatory action.
It was revealed during an Administrative Appeals Tribunal hearing Brindabella Christian Education Limited, the charity which operates the school, owed up to $4.8 million to the Australian Taxation Office.
In a statement last week, board chair Greg Zwajgenberg said the debt was "subject of an agreed ATO arrangement" and the school was "in the middle of seeking to extinguish the debt and rolling it into existing facilities."
A tax office spokesperson said while the ATO couldn't comment on any individual or entity due to confidentiality laws, there was no way for debts to be extinguished.
"The ATO confirms that tax debts cannot be 'extinguished'. The commissioner does not have the power to waive a tax debt," the spokesperson said.
Mr Zwajgenberg did not respond to questions by deadline.
Brindabella Christian Education Limited was required to agree to a repayment plan with the tax office by May 1 and ensure it complied with that plan.
The tax office spokesperson said requests to vary repayments were considered case by case, taking into account the taxpayer's overall situation, financial health and compliance history.
If a payment was missed, it may go into arrears and the taxpayer could be given time to catch up.
"If a payment plan defaults, the ATO will generally first attempt to contact a taxpayer to understand their circumstances; in doing so, the ATO may consider renegotiating the payment plan. However, if a new plan is not appropriate or cannot be agreed, then the ATO will progress to considering stronger actions," the spokesperson said.
Mr Zwajgenberg did not answer questions about whether the school had met other conditions that were due by May 1, including signing off on the overdue 2021 financial statement and providing a letter to the education minister on progress to date.
The 2021 audited financial statement has not been published on the Australian Charities and Not-for-profits Commission website.
The Department of Education refused to answer questions on whether the school had complied with the conditions due by May 1 and what would happen if it did not implement the reforms.
"The Department of Education continues to work with Brindabella Christian Education Limited to ensure it meets the obligations as outlined in Administrative Appeals Tribunal orders," a department spokesman said.
"The department values the co-operation of approved school authorities in administering the requirements of the Act and the Australian Education Regulation 2013, and we will not comment further on the specifics of any individual assurance and compliance matter."
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