There is horrible news for business owners who have an ATO debt from 1 July 2017. Small businesses will need to be careful of ATO Bankruptcy since the ATO may impart information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it far more arduous for small businesses to receive credit, possibly paralysing 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 overdue debts with the ATO that are more 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 hpw you understand, the ATO must first notify you before they disclose your debt information to any credit agency.
If your ATO debts seem to be getting out of control and you don’t want your credit rating blemished then you have at least one viable option: Set up a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Conversely, if you suspect there is simply no hope or the ATO is threatening legal action against you because of your unpaid ATO debts, then bankruptcy may be a viable option for you. If you would like to know more about how you can get out from under the crippling burden of business or personal debts, just speak to us here at Bankruptcy Experts Hervey Bay on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsherveybay.com.au.