Small business tax debt not such a small problem anymore

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Small business tax debt not such a small problem anymore

Katri Vuorinen • June 14, 2017

ATO has announced that, from the 1 ^st of July 2017 it will start reporting unpaid and overdue business tax debts to Credit Reference Bureau. What this means is, if your business has a tax debt of over $10,000, that is over 90 days old, and you have not effectively engaged with ATO to manage it, your business might lose its credit rating for the next five years.

You will need to worry if:

You have an ABN

The debt amount is over $10,000 and over 90 days old

The debt is not in dispute

There isn't any established payment plan with the ATO or

The payment plan with ATO has defaulted

ATO assures it will notify the business before referring the tax debt to a credit bureau, and only after it has exhausted all ways of recovering this debt.

If you are concerned, please give the ATO a call before your tax bill is due, or alternatively give us a call so we can assist you to arrange a payment plan with ATO.

Source: www.ato.gov.au

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