There is terrible news for company owners who have an ATO debt as of 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 like Dun & Bradstreet and Veda Advantage. This will make it far more complicated for small businesses to acquire credit, potentially incapacitating them. How could this have an effect 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 more than $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 divulge your debt information to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating destroyed then you have at least one viable option: Enter into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Conversely, if you believe there is simply no hope or the ATO is threatening legal action against you as a result of your unpaid ATO debts, then bankruptcy may be a feasible option for you. If you would like to know more about how you can get out from under the debilitating burden of business or personal debts, just talk with us here at Bankruptcy Experts Mackay on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsmackay.com.au.