There is bad news for company owners who have an ATO debt as of 1 July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may impart details of your tax debts to credit reporting agencies like Dun & Bradstreet and Veda Advantage. This will make it a lot more problematic for small businesses to secure credit, possibly crippling them. How could this bear upon you? You may be impacted if you find yourself in one of the following three categories:
1. Have an ABN (i.e. you own a business and/or you are a contractor);.
2. Have debts with the ATO that are above $10,000 and are more than 90 days overdue; and.
3. You are not in any type of payment arrangement with the ATO.
Just so you’re aware, the ATO must first advise you before they reveal your debt details 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: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the other hand, if you feel there is simply no hope or the ATO is threatening litigation against you because of your unpaid ATO debts, then bankruptcy may be a viable option for you. If you want to know more about ways to recover from the crippling burden of business or personal debts, just get in touch with us here at Bankruptcy Experts Port Stephens on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsportstephens.com.au.