There is troubling news for company owners who have an ATO debt from 1st July 2017. Small businesses should 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 a lot more complicated for small businesses to attain credit, possibly incapacitating them. How could this bear upon you? You may be impacted if you find yourself in 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 above $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 know, the ATO must first notify 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 tarnished then you have at least one usable option: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Alternatively, if you suspect 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 sensible option for you. If you want to know more about how you can get out from under the debilitating burden of personal or business debts, just give us a call here at Bankruptcy Experts Alice Springs on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsalicesprings.com.au.