There is horrible news for company owners who have an ATO debt as of 1 July 2017. Small businesses have to be careful of ATO Bankruptcy since the ATO may broadcast information of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it a lot more arduous for small businesses to attain credit, possibly crippling them. How could this have a bearing on you? You may be affected 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 unpaid debts with the ATO that are greater than $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’re aware, the ATO must first give notice to you before they broadcast your debt details to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating damaged then you have at least one usable option: Organise a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
On the contrary, if you sense there is simply no hope or the ATO is threatening legal action against you because of your overdue ATO debts, then bankruptcy may be a sensible option for you. If you would like to know more about how you can get out from under the debilitating burden of personal or business debts, just call us here at Bankruptcy Experts Dandenong on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsdandenong.com.au.