There is bad news for company owners who have an ATO debt from 1st July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may divulge details of your tax debts to credit reporting agencies like Dun & Bradstreet and Veda Advantage. This will make it much more challenging for small businesses to acquire credit, possibly crippling them. How could this bear upon 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 past 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 warn you before they divulge your debt information to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating crippled then you have at least one feasible option: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Conversely, if you think there is simply no hope or the ATO is threatening legal action against you due to your overdue ATO debts, then bankruptcy may be a viable option for you. If you would like to know more about how to recover from the crippling burden of business or personal debts, just speak to us here at Bankruptcy Experts Gosford on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsgosford.com.au.