There is grim news for business owners who have an ATO debt from 1 July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may disclose information of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it a lot more difficult for small businesses to acquire credit, possibly incapacitating them. How could this have a bearing on you? You may be impacted 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 type of payment arrangement with the ATO.
Just so you know, the ATO must first notify you before they unveil your debt details 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 usable option: Enter into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Nevertheless, if you feel there is simply no hope or the ATO is threatening legal action against you as a result of your unsettled 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 debilitating burden of business or personal debts, just give us a call here at Bankruptcy Experts Toowoomba on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertstoowoomba.com.au.