TAX DEBT DISCLOSURE TO CREDIT REPORTING AGENCIES!

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The Government introduced a bill in July 2019 to allow the ATO to disclose business tax debt information to registered credit reporting bureaus. 

Under the proposed law, the ATO will disclose tax debt information for a business that has: 

- one or more tax debts of at least $100,000;

- the debt is overdue by more than 90 days; and

- the business is not engaging with the ATO to manage its tax debt. 

The purpose of allowing the ATO to report the tax debt information is to: 

  • Encourage businesses to engage with the ATO to manage their tax debts

  • Reduce the unfair advantage obtained by businesses that don’t pay their tax on time and don’t engage with the ATO to manage their debts

  • Making large overdue tax debts more visible

The ATO will notify the business in writing and provide 28 days for the business to engage with the ATO and take action to avoid having its tax debt information reported.

If your business fits this criteria and receives correspondence from the ATO in this regard, you must act immediately.  Delays may be detrimental to your business!

If you would like to discuss this further, please contact our office.