There is troubling news for business owners who have an ATO debt as of 1st July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may disclose details of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it a lot more complicated for small businesses to obtain credit, possibly incapacitating them. How could this have a bearing on you? You may be affected if you find yourself in one of the following 3 categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have debts with the ATO that are in excess of $10,000 and are more than 90 days overdue; and.
- You are not in any sort of payment arrangement with the ATO.
Just so you know, the ATO must first notify you before they disclose your debt information to any credit agency.
If your ATO debts seem to be getting out of control and you don’t want your credit rating impaired then you have at least one viable option: Set up a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Conversely, if you believe there is simply no hope or the ATO is threatening litigation against you as a result of your unpaid ATO debts, then bankruptcy may be a plausible option for you. If you would like to know more about how to recover from the crippling burden of business or personal debts, just give us a call here at Liquidation Service on 1300 795 575 or visit our website for additional information: www.liquidationservice.com.au.