There is unfortunate news for company owners who have an ATO debt from 1 July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may broadcast information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it much more difficult for small businesses to secure credit, possibly crippling them. How could this affect 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 unpaid 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 notify you before they reveal your debt details to any credit agency.
If your ATO debts seem to be getting out of hand and you don’t want your credit rating harmed then you have at least one viable option: Organise a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the other hand, if you suspect there is simply no hope or the ATO is threatening legal action against you as a result of your overdue ATO debts, then bankruptcy may be a practical option for you. If you would like to know more about how you can recover from the crippling burden of personal or business debts, just talk to us here at Bankruptcy Experts Frankston on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsfrankston.com.au.