There is unfavourable news for business owners who have an ATO debt as of 1st July 2017. Small businesses have to be careful of ATO Bankruptcy since the ATO may impart details of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it far more complicated for small businesses to obtain credit, possibly paralysing them. How could this have a bearing on you? You may be impacted 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 unsettled debts with the ATO that are in excess of $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’re aware, the ATO must first alert you before they expose your debt information to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating crippled then you have at least one usable option: Organise a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the contrary, if you think 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 practical option for you. If you want to know more about how to recover from the debilitating burden of personal or business debts, just give us a call here at Bankruptcy Experts Fremantle on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsfremantle.com.au.