There is unfortunate news for business owners who have an ATO debt from 1 July 2017. Small businesses will need to be careful of ATO Bankruptcy since the ATO may broadcast information of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it much more problematic for small businesses to secure 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 kind of payment arrangement with the ATO.
Just so you know, the ATO must first advise you before they impart your debt details to any credit agency.
If your ATO debts seem to be getting out of control and you don’t want your credit rating harmed then you have at least one viable option: Set up a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the other hand, if you think there is simply no hope or the ATO is threatening legal action 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 debilitating burden of personal or business debts, just get in contact with us here at Bankruptcy Experts Darwin on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsdarwin.com.au.