There is horrible news for business owners who have an ATO debt as of 1st July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may broadcast information of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it much more arduous for small businesses to attain credit, possibly incapacitating them. How could this have an effect on you? You may be affected if you find yourself in 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 kind of payment arrangement with the ATO.
Just so you know, the ATO must first notify you before they disclose your debt information to any credit agency.
If your ATO debts seem to be getting out of control and you don’t want your credit rating tarnished 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 because of your unpaid ATO debts, then bankruptcy may be a rational option for you. If you want to know more about how you can get out from under the crippling burden of personal or business debts, just call us here at Bankruptcy Experts Wangaratta on 1300 795 575 or visit our website for more information: www.bankruptcyexpertswangaratta.com.au.