There is distressing news for business owners who have an ATO debt as of 1st July 2017. Small businesses must be careful of ATO Bankruptcy since the ATO may unveil details of your tax debts to credit reporting agencies like Dun & Bradstreet and Veda Advantage. This will make it much more complicated for small businesses to receive credit, possibly crippling them. How could this affect 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 greater 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’re aware, the ATO must first alert you before they impart your debt information to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating harmed then you have at least one workable option: Set up a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.
Nevertheless, if you sense 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 rational option for you. If you want to know more about ways to recover from the debilitating burden of business or personal debts, just call us here at Bankruptcy Experts Kalgoorlie on 1300 795 575 or visit our website for more details: www.bankruptcyexpertskalgoorlie.com.au.