There is troubling news for company owners who have an ATO debt from 1 July 2017. Small businesses have to be careful of ATO Bankruptcy since the ATO may unveil details of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it much more challenging for small businesses to acquire credit, potentially incapacitating them. How could this affect 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 type of payment arrangement with the ATO.
Just so you understand, the ATO must first inform you before they unveil your debt details to any credit agency.
If your ATO debts seem to become uncontrollable and you don’t want your credit rating blemished then you have at least one usable option: Enter into a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Nevertheless, if you suspect there is simply no hope or the ATO is threatening legal action against you due to your unpaid ATO debts, then bankruptcy may be a feasible option for you. If you want to know more about how to recover from the debilitating burden of business or personal debts, just talk with us here at Bankruptcy Experts Mildura on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsmildura.com.au.