There is troubling news for business owners who have an ATO debt as of 1 July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may publish information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it a lot more difficult for small businesses to obtain credit, potentially incapacitating them. How could this bear upon you? You may be impacted if you find yourself in one of the following 3 categories:
1. Have an ABN (i.e. you own a business and/or you are a contractor);.
2. Have unpaid debts with the ATO that are in excess of $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 know, the ATO must first inform you before they publish 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 impaired then you have at least one feasible option: Set up a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
On the contrary, if you believe 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 feasible option for you. If you want to know more about how to recover from the crippling burden of business or personal debts, just talk with us here at Bankruptcy Experts Newcastle on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsnewcastle.com.au.