There is terrible news for company owners who have an ATO debt from 1 July 2017. Small businesses will need to be careful of ATO Bankruptcy since the ATO may disclose information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it far more challenging for small businesses to receive credit, potentially incapacitating them. How could this have a bearing on 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 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’re aware, the ATO must first give notice to you before they divulge your debt details to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating impaired then you have at least one viable option: Get into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Nevertheless, if you believe there is simply no hope or the ATO is threatening litigation against you as a result of your unsettled ATO debts, then bankruptcy may be a sensible option for you. If you would like to know more about ways to recover from the debilitating burden of personal or business debts, just give us a call here at Bankruptcy Experts Rockhampton on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsrockhampton.com.au.