There is upsetting news for company owners who have an ATO debt as of 1 July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may reveal information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it a lot more complicated for small businesses to obtain credit, potentially incapacitating them. How could this have a bearing on you? You may be affected if you fit into one of the following three categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have past 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 you’re aware, the ATO must first inform you before they broadcast your debt information to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating tarnished then you have at least one workable option: Enter into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
On the other hand, if you suspect there is simply no hope or the ATO is threatening legal action against you due to your unpaid ATO debts, then bankruptcy may be a practical option for you. If you would like to know more about how you can get out from under the debilitating burden of personal or business debts, just talk to us here at Bankruptcy Experts Lismore on 1300 795 575 or visit our website for more details: www.bankruptcyexpertslismore.com.au.