There is grim news for company owners who have an ATO debt as of 1st July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may reveal information of your tax debts to credit reporting agencies like Dun & Bradstreet and Veda Advantage. This will make it much more arduous for small businesses to receive credit, possibly incapacitating them. How could this affect you? You may be impacted 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 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 warn you before they divulge your debt details to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating impaired then you have at least one workable option: Set up 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 legal action against you because of your unpaid ATO debts, then bankruptcy may be a realistic option for you. If you want to know more about how you can get out from under the crippling burden of personal or business debts, just give us a ring here at Bankruptcy Experts Shellharbour on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsshellharbour.com.au.