There is grim news for company owners who have an ATO debt as of 1st July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may broadcast information of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it a lot more challenging for small businesses to obtain credit, potentially paralysing them. How could this have a bearing on you? You may be affected 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 unsettled debts with the ATO that are more than $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 alert you before they publish your debt information to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating destroyed then you have at least one usable option: Organise a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Alternatively, if you think there is simply no hope or the ATO is threatening litigation against you due to your unpaid ATO debts, then bankruptcy may be a plausible option for you. If you want to know more about how you can recover from the crippling burden of personal or business debts, just give us a call here at Bankruptcy Experts Sunshine Coast on 1300 795 575 or visit our website for more details: www.bankruptcyexpertssunshinecoast.com.au.