There is terrible news for business owners who have an ATO debt as of 1 July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may unveil information of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it much more problematic for small businesses to secure credit, possibly incapacitating them. How could this affect you? You may be impacted 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 past 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 with the ATO.
Just so you understand, the ATO must first notify you before they divulge 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 tarnished 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 get out from under the crippling burden of business or personal debts, just give us a call here at Bankruptcy Experts Northern Rivers on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsnorthernrivers.com.au.