ATO have begun chasing payment on outstanding debts
ATO starts acting on its outstanding debts power.
From 2019 to 2020 the ATOs collectable debt has grown by its largest ever margin, from $26.6 billion to $34.1 billion.
Now 18 months into the pandemic, the ATO have begun chasing payment on outstanding debts, and have started to act on their powers to report businesses to credit reporting agencies. It’s a good time to check in with your accountant if you have outstanding debt and be proactive! If so consult with your Tax advisor whether or not you need additional funding to assist clear this debt. This is where Direct Credit Home Loans Australia can assist.
Do you have outstanding tax debts?
Laws passed in 2019 allow the ATO to report a business to credit rating agencies.
These powers were initially put on hold to allow businesses to cope with the tough conditions created by the pandemic but the ATO are notifying of their intent to commence action and disclose SME tax debt to credit reporting agencies, like Equifax, Dun and Bradstreet and Illion. If listed, this can stay on your credit file for 5 years and possibly up to 7 years if the ATO seeks a court ruling.
Your business could be reported if you;
• owe over $100,000 in tax
• have an ABN
• are more than 90 days in arrears
• don’t have a payment plan in place or being negotiated
Business tax debt captured in the tax debt disclosure threshold includes;
• income tax debts
• activity statement debts
• superannuation debts
• fringe benefit debt
• penalties and interest charges
For further details click here credit reporting law now being enforced
Help yourself by taking proactive action!
If the above situation applies to you, being proactive is the best course of action to protect you and your business from the risk of default.
It’s vital you get on the front foot and reach out to the ATO to discuss a repayment arrangement. Businesses who are actively engaging with the ATO to manage their tax debt will not be reported to credit reporting bureaus.
Help is here!
Direct Credit Home Loans Australia have assisted many Australian buisness owners and alike to refinance ATO tax debt, using equity in their current Residential or Commercial property.
To find out more vistit us at www.directcredit.com.au/loans/ato-tax-debt-refinancing
Equity is required in either;
- A property (Residential or Commercial)
- Invoice finance (unlock additional working capital to pay down ATO commitments)
Call us today on 07 3726 1124 to discuss your matter confidentially with one of our friendly team.