ATO Disclosure of Business Tax Debts to Credit Reporting Bureaus

Categories: ATO, General, NewsPublished On: October 18th, 2022175 words

The Australian Tax Office (ATO) is now writing to businesses with an active ABN whose tax debt meet the criteria for disclosure of debts. This means your tax debt may now negatively affect your credit rating and ability to source new finance.

Businesses with over $100,000 in tax debts may receive letters from the ATO warning them that they intend to disclose tax debt information to Credit Reporting Bureaus (CRB’s) if the business does not make an effort to manage their debts within 28 days.

The ATO’s new powers come after the government passed a law in late 2019 to clamp down on businesses with tax debts of more than $100,000 that are at least 90 days overdue.

If you have any questions about this, or have received a letter from the ATO, please get in touch. If you effectively engage with the ATO, preferably through your trusted BDH Leaders advisor, there is less chance your tax debts will be disclosed.

For more information on the criteria and engaging with the ATO to manage tax debts, click here.

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