There is distressing news for company owners who have an ATO debt as of 1st July 2017. Small businesses will need to be careful of ATO Bankruptcy since the ATO may unveil information of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it a lot more difficult for small businesses to receive credit, possibly incapacitating them. How could this have a bearing on you? You may be impacted if you find yourself in one of the following 3 categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have past debts with the ATO that are in excess of $10,000 and are more than 90 days overdue; and.
- You are not in any sort of hpw payment arrangement with the ATO.
Just so you understand, the ATO must first warn you before they divulge your debt information to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating blemished then you have at least one usable option: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
On the contrary, if you feel there is simply no hope or the ATO is threatening legal action against you due to your overdue ATO debts, then bankruptcy may be a rational option for you. If you want to know more about ways to get out from under the debilitating burden of business or personal debts, just get in contact with us here at Bankruptcy Experts Whitsundays on 1300 795 575 or visit our website for more details: www.bankruptcyexpertswhitsundays.com.au.