There is unfortunate news for business owners who have an ATO debt as of 1st July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may divulge information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it a lot more problematic for small businesses to secure credit, possibly paralysing them. How could this have an effect on you? You may be affected if you fit into 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 sort of payment arrangement with the ATO.
Just so you’re aware, the ATO must first notify you before they broadcast 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 destroyed then you have at least one usable option: Enter into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the other hand, if you believe there is simply no hope or the ATO is threatening litigation against you due to your unpaid ATO debts, then bankruptcy may be a sensible option for you. If you want to know more about how you can recover from the debilitating burden of personal or business debts, just contact us here at Bankruptcy Experts Coffs Harbour on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertscoffsharbour.com.au.