There is terrible news for company owners who have an ATO debt from 1st July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may reveal details of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it far more problematic for small businesses to secure credit, possibly crippling them. How could this affect you? You may be affected if you find yourself in one of the following three categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have overdue 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 hpw so you know, the ATO must first alert you before they divulge 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 harmed then you have at least one feasible option: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Alternatively, if you think there is simply no hope or the ATO is threatening legal action against you as a result of your unpaid ATO debts, then bankruptcy may be a viable option for you. If you want to know more about ways to get out from under the crippling burden of personal or business debts, just give us a call here at Bankruptcy Experts Tweed Coast on 1300 795 575 or visit our website for more details: www.bankruptcyexpertstweedcoast.com.au.