There is horrible 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 expose details of your tax debts to credit reporting agencies like Dun & Bradstreet and Veda Advantage. This will make it much more difficult for small businesses to receive credit, potentially incapacitating them. How could this have a bearing 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 debts with the ATO that are greater than $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 give notice to you before they impart your debt information to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating hurt then you have at least one viable option: Organise a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Alternatively, if you sense there is simply no hope or the ATO is threatening litigation against you as a result of your overdue ATO debts, then bankruptcy may be a realistic option for you. If you would like to know more about how you can get out from under the crippling burden of business or personal debts, just contact us here at Bankruptcy Advice Perth on 1300 879 867 or visit our website for additional information: www.bankruptcy-advice.com.au/perth.