There is grim news for company owners who have an ATO debt from 1st July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may expose details of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it a lot more arduous 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 unsettled debts with the ATO that are greater 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 understand, the ATO must first give notice to you before they expose 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 feasible option: Organise a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
On the contrary, if you think there is simply no hope or the ATO is threatening litigation against you because of your unpaid ATO debts, then bankruptcy may be a viable option for you. If you want to know more about how you can get out from under the debilitating burden of personal or business debts, just speak to us here at Bankruptcy Experts Parramatta on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsparramatta.com.au.