There is unfavourable news for company owners who have an ATO debt from 1st July 2017. Small businesses have to be careful of ATO Bankruptcy since the ATO may publish details of your tax debts to credit reporting agencies like Dun & Bradstreet and Veda Advantage. This will make it a lot more challenging for small businesses to receive credit, possibly incapacitating them. How could this bear upon you? You may be impacted if you find yourself in one of the following three categories:
1. Have an ABN (i.e. you own a business and/or you are a contractor);
2. Have debts with the ATO that are greater than $10,000 and are more than 90 days overdue; and.
3. You are not in any kind of payment arrangement with the ATO.
Just so you know, the ATO must first inform you before they reveal 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 tarnished then you have at least one viable option: Organise a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Conversely, if you sense there is simply no hope or the ATO is threatening litigation against you due to your unsettled ATO debts, then bankruptcy may be a rational option for you. If you want to know more about ways to recover from the debilitating burden of business or personal debts, just speak to us here at Bankruptcy Experts on 1300 795 575 or visit our website for more details: www.bankruptcyexperts.com.au.