There is unfavourable news for company owners who have an ATO debt as of 1st July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may impart details of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it far more problematic for small businesses to acquire credit, potentially crippling them. How could this have a bearing 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 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 kind of payment arrangement with the ATO.
Just so you understand, the ATO must first advise you before they unveil your debt details 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 feasible option: Get into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Conversely, if you suspect there is simply no hope or the ATO is threatening litigation against you due to your overdue ATO debts, then bankruptcy may be a realistic option for you. If you want to know more about how to get out from under the crippling burden of business or personal debts, just call us here at Bankruptcy Experts Townsville on 1300 795 575 or visit our website for more details: www.bankruptcyexpertstownsville.com.au.