From 1st July 2017 the ATO began passing on debt to credit agencies.
What ATO Debts are being affected?
SMEs with tax debts that are more than 90 days overdue, that are not in dispute and where there are no Payment arrangements in place with the ATO are being prioritised.
Initially, the ATO will only disclose the tax debt position of businesses with an ABN and with a tax debt of more than $10K that is overdue by 90 days.
What does it mean for your business if your ATO Debt has been passed on to a credit agency?
This change will make it increasingly difficult for those affected businesses to access credit and could potentially bankrupt some of them.
How To Survive An ATO Debt Crack Down And The Consequences
First and foremost it’s critical that you don’t continue to ignore the outstanding debt. Acting now will help you avoid your future credit rating being affected and or bankruptcy.
Seek Professional Advice
Assess where your current ATO liabilities stand. Talk to your Accountant, Bookkeeper or Financial adviser to understand the full picture.
Contact the ATO to make arrangements and find out your options in relation to payment.
Manage your cash flow and repayments
Ensure systems are in place to maintain arrangements and future tax liabilities
Take advantage of finance options to repay your debt
Contact your First in Finance credit representative to discuss options to finance ATO debt to relieve the burden of ATO arrears. Finance is available through specialist lenders.
These Specialist lending options are accessible via First in Finance credit representatives, who will discuss with you options available.
Bronko Kozel – NSW Office
0406 421 804
Michael McCluskey – QLD office
0409 017 848
Graeme Boyd – NSW Office
0421 418 994