Tax Debt information can now be reported to Credit Reporting Bureaus
Historically, if you owed money to the ATO this would not appear on any credit checks for finance. The Australian Government has given the ATO permission to disclose tax debt information to registered Credit Reporting Bureaus (CRB’s).
Permission to disclose information to Credit Reporting Bureaus will only be given if the business meets the following criteria:
- The business has an ABN; and
- The business has a tax debt which is overdue by at least $10,000 at 90 days;
- The business is not making efforts to manage the tax debt (There is no payment plan in place).
If your business meets this criteria you will be notified in writing and advised to respond within 21 days before the tax debt information is reported to CRB’s.
What action you should take
If you are in contact with the ATO with regards to your tax debt and, are either entering a payment plan or disputing a tax liability, your tax debt information may not be reported to CRB’s.
If the business has an ATO tax debt you should contact the ATO and organise a payment plan. Alternatively, if paying your tax liabilities are an ongoing issue contact your accountant to do a review on your business.
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