There is unfortunate news for company owners who have an ATO debt from 1 July 2017. Small businesses should be careful of ATO Bankruptcy since the ATO may reveal details of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it far more challenging for small businesses to receive credit, possibly crippling them. How could this bear upon you? You may be affected if you find yourself in one of the following three categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have past debts with the ATO that are in excess of $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 warn you before they impart your debt information to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating impaired then you have at least one workable option: Set up a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the other hand, if you think there is simply no hope or the ATO is threatening legal action against you due to your unpaid ATO debts, then bankruptcy may be a plausible option for you. If you would like to know more about how to get out from under the crippling burden of personal or business debts, just get in contact with us here at Bankruptcy Australia on 1300 795 575 or visit our website for more information: www.bankruptcy-australia.net.au.