There is terrible news for business owners who have an ATO debt from 1 July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may divulge details 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 receive credit, possibly crippling them. How could this have an effect on you? You may be impacted if you find yourself in one of the following 3 categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have unpaid debts with the ATO that are in excess of $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 inform you before they reveal your debt information 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 usable option: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the other hand, if you think there is simply no hope or the ATO is threatening legal action against you as a result of your unsettled 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 debilitating burden of business or personal debts, just talk with us here at Bankruptcy Experts Shepparton on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsshepparton.com.au.