There is horrible news for business owners who have an ATO debt from 1 July 2017. Small businesses must 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 far more difficult for small businesses to obtain credit, potentially paralysing them. How could this affect 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 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 know, the ATO must first advise you before they broadcast your debt details to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating destroyed then you have at least one workable 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 because of your overdue ATO debts, then bankruptcy may be a rational option for you. If you would like to know more about ways to get out from under the debilitating burden of personal or business debts, just get in contact with us here at Bankruptcy Experts Albury on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsalbury.com.au.