There is troubling 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 divulge details of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it much more complicated for small businesses to secure credit, possibly incapacitating them. How could this have a bearing on 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 past debts with the ATO that are greater than $10,000 and are more than 90 days overdue; and.
- You are not in any kind of payment arrangement with the ATO.
Just so you’re aware, the ATO must first advise you before they unveil 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 damaged then you have at least one viable option: Enter into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Alternatively, if you feel there is simply no hope or the ATO is threatening litigation against you because of your unsettled ATO debts, then bankruptcy may be a plausible option for you. If you want to know more about how you can recover from the crippling burden of business or personal debts, just get in contact with us here at Bankruptcy Experts Joondalup on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsjoondalup.com.au.