There is grim news for business owners who have an ATO debt as of 1 July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may publish 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 acquire credit, possibly crippling them. How could this affect 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 overdue 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 know, the ATO must first inform you before they unveil your debt details to any credit agency.
If your ATO debts seem to be getting out of hand and you don’t want your credit rating harmed then you have at least one viable 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 because of your unsettled ATO debts, then bankruptcy may be a sensible option for you. If you would like to know more about ways to recover from the debilitating burden of business or personal debts, just get in touch with us here at Bankruptcy Experts Cairns on 1300 795 575 or visit our website for more information: www.bankruptcyexpertscairns.com.au.