There is grim news for company owners who have an ATO debt as of 1 July 2017. Small businesses will need to be careful of ATO Bankruptcy since the ATO may disclose information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it far more difficult for small businesses to attain credit, possibly crippling them. How could this have a bearing on you? You may be impacted 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 sort of payment arrangement with the ATO.
Just so you know, the ATO must first notify you before they divulge your debt information to any credit agency.
If your ATO debts seem to be getting out of hand and you don’t want your credit rating hurt then you have at least one workable option: Get into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Nevertheless, if you suspect there is simply no hope or the ATO is threatening legal action against you because of your unpaid ATO debts, then bankruptcy may be a plausible option for you. If you want to know more about how you can get out from under the crippling burden of business or personal debts, just give us a call here at Bankruptcy Experts Gold Coast on 1300 879 867 or visit our website for more information: www.bankruptcyexpertsgoldcoast.com.au.