There is unfortunate news for business owners who have an ATO debt as of 1st July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may disclose details of your tax debts to credit reporting agencies like Dun & Bradstreet and Veda Advantage. This will make it far more complicated for small businesses to receive credit, possibly crippling them. How could this have an effect on 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 overdue debts with the ATO that are greater than $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 understand, the ATO must first inform you before they impart your debt details to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating harmed then you have at least one feasible option: Set up a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Nevertheless, if you think there is simply no hope or the ATO is threatening legal action against you because of your overdue ATO debts, then bankruptcy may be a practical option for you. If you want to know more about how to recover from the crippling burden of business or personal debts, just give us a ring here at Bankruptcy Experts Cassowary Coast on 1300 795 575 or visit our website for more information: www.bankruptcyexpertscassowarycoast.com.au.