There is upsetting news for business owners who have an ATO debt from 1st July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may expose details of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it much more arduous for small businesses to attain credit, possibly crippling them. How could this bear upon you? You may be impacted 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 overdue debts with the ATO that are in excess of $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 impart your debt information 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 feasible option: Enter into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
On the contrary, if you suspect there is simply no hope or the ATO is threatening litigation against you due to your overdue ATO debts, then bankruptcy may be a plausible option for you. If you want to know more about how you can get out from under the debilitating burden of personal or business debts, just give us a call here at Bankruptcy Experts Geraldton on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsgeraldton.com.au.