There is terrible news for business owners who have an ATO debt as of 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 like Veda Advantage and Dun & Bradstreet. This will make it much more problematic for small businesses to acquire credit, possibly crippling them. How could this have an effect 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 past debts with the ATO that are in excess of $10,000 and are more than 90 days overdue; and.
- You are not in any type of payment arrangement with the ATO.
Just so you’re aware, the ATO must first warn you before they broadcast your debt details to any credit agency.
If your ATO debts seem to be getting out of hand and you don’t want your credit rating defaced 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 feel there is simply no hope or the ATO is threatening litigation against you because of your unpaid ATO debts, then bankruptcy may be a feasible option for you. If you want to know more about ways to get out from under the debilitating burden of business or personal debts, just speak with us here at Bankruptcy Experts Gympie on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsgympie.com.au.