There is grim news for business owners who have an ATO debt as of 1st July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may unveil information of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it a lot more problematic for small businesses to receive credit, potentially incapacitating them. How could this bear upon 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 debts with the ATO that are more than $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 understand, the ATO must first advise you before they disclose 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: Enter into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
On the contrary, if you feel there is simply no hope or the ATO is threatening litigation against you due to your overdue ATO debts, then bankruptcy may be a practical option for you. If you want to know more about ways to recover from the crippling burden of personal or business debts, just call us here at Bankruptcy Advice on 1300 879 867 or visit our website for additional information: www.bankruptcy-advice.com.au/.