There is terrible news for business owners who have an ATO debt from 1 July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may publish details of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it much more difficult for small businesses to obtain credit, potentially paralysing them. How could this have a bearing on 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 overdue 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 know, the ATO must first warn you before they publish your debt details 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: 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 unsettled ATO debts, then bankruptcy may be a rational option for you. If you want to know more about how you can recover from the crippling burden of personal or business debts, just get in touch with us here at Bankruptcy Experts Wyong on 1300 795 575 or visit our website for more details: www.bankruptcyexpertswyong.com.au.