There is distressing news for business owners who have an ATO debt as of 1 July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may unveil details of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it far more problematic for small businesses to secure credit, potentially crippling them. How could this have an effect on you? You may be impacted if you fit into one of the following 3 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 kind of payment arrangement with the ATO.
Just so you know, the ATO must first give notice to you before they divulge your debt details 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 viable option: Get into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
On the other hand, if you feel there is simply no hope or the ATO is threatening legal action against you because of your unsettled ATO debts, then bankruptcy may be a rational option for you. If you would like to know more about how you can get out from under the debilitating burden of business or personal debts, just speak to us here at Bankruptcy Experts Brisbane on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsbrisbane.com.au.