There is horrible news for business owners who have an ATO debt from 1 July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may divulge information of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it much more challenging for small businesses to receive credit, potentially crippling them. How could this bear upon 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 unsettled debts with the ATO that are above $10,000 and are more than 90 days overdue; and.
- You are not in any type of payment arrangement hpw with the ATO.
Just so you understand, the ATO must first inform you before they broadcast your debt information to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating hurt then you have at least one workable option: Set up a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Nevertheless, if you feel 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 feasible option for you. If you want to know more about ways to recover from the crippling burden of business or personal debts, just speak to us here at Bankruptcy Experts Rockingham on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsrockingham.com.au.