There is terrible news for business owners who have an ATO debt as of 1 July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may divulge information of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it much more challenging for small businesses to secure credit, possibly crippling them. How could this bear upon you? You may be impacted if you fit into 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 above $10,000 and are more than 90 days overdue; and.
- You are not in any kind of payment arrangement with the ATO.
Just so you understand, the ATO must first alert you before they unveil your debt information to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating affected then you have at least one usable option: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Nevertheless, 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 feasible option for you. If you would like to know more about how you can recover from the debilitating burden of personal or business debts, just speak with us here at Bankruptcy Experts Taree on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertstaree.com.au.