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 unveil details of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it a lot more challenging for small businesses to receive credit, potentially crippling them. How could this affect you? You may be affected if you find yourself in one of the following 3 categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have debts with the ATO that are above $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 know, the ATO must first warn you before they divulge your debt details to any credit agency.
If your ATO debts seem to be getting out of control and you don’t want your credit rating hurt 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 litigation against you as a result of your unpaid ATO debts, then bankruptcy may be a feasible option for you. If you want to know more about ways to recover from the crippling burden of personal or business debts, just contact us here at Bankruptcy Experts Emerald on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsemerald.com.au.