There is grim news for company owners who have an ATO debt from 1 July 2017. Small businesses will want to 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 challenging for small businesses to attain credit, possibly paralysing them. How could this bear upon you? You may be impacted 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 type of payment arrangement with the ATO.
Just so you understand, the ATO must first warn 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 damaged then you have at least one usable option: Organise a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Conversely, if you think there is simply no hope or the ATO is threatening legal action against you due to your overdue ATO debts, then bankruptcy may be a practical option for you. If you would like to know more about how you can recover from the debilitating burden of personal or business debts, just call us here at Bankruptcy Experts Adelaide on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsadelaide.com.au.