There is upsetting news for company owners who have an ATO debt from 1 July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may broadcast details of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it a lot more challenging for small businesses to secure credit, potentially incapacitating them. How could this have an effect on you? You may be affected 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 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 notify you before they reveal your debt information to any credit agency.
If your ATO debts seem to be getting out of control and you don’t want your credit rating damaged then you have at least one feasible 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 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 to recover from the debilitating burden of business or personal debts, just call us here at Bankruptcy Experts Dubbo on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsdubbo.com.au.