There is unfortunate news for business owners who have an ATO debt from 1st July 2017. Small businesses will need to be careful of ATO Bankruptcy since the ATO may reveal information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it a lot more complicated for small businesses to receive credit, potentially paralysing them. How could this bear upon you? You may be impacted if you find yourself in one of the following three categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have unsettled debts with the ATO that are in excess of $10,000 and are more than 90 days overdue; and.
- You are not in any kind of payment arrangement with the ATO.
Just so you understand, the ATO must first notify you before they broadcast your debt details to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating crippled then you have at least one usable option: Organise a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Nevertheless, if you suspect there is simply no hope or the ATO is threatening litigation against you due to your overdue ATO debts, then bankruptcy may be a realistic option for you. If you would like to know more about ways to recover from the debilitating burden of personal or business debts, just give us a ring here at Bankruptcy Experts Tennant Creek on 1300 795 575 or visit our website for more details: www.bankruptcyexpertstennantcreek.com.au.