From 1 July 2017, the ATO will begin to report outstanding taxation obligations to credit reporting agencies (like Veda). Any tax debt greater than $10,000 which has ben outstanding for more than 90 days is at risk of being reported. However, if the ATO debt is subject to a payment arrangement with the ATO, it will not be reported. This is relevant for anyone with an ABN.
The implication for business owners is that they must proactively deal with the ATO in relation to payment obligations, or risk having their credit damaged by an adverse listing.
Grauf O'Brien Lawyers is regularly engaged by small business owners to negotiate formal payment arrangements with the ATO. See our Quick Note on ATO payment arrangements here. As we approach the end of this financial year, business owners need to get on the front foot with regards to any outstanding, or even forthcoming taxation obligations so that they can maintain a healthy credit score.
For a confidential discussion, please contact Grauf O'Brien Lawyers on (07) 3085 5696 or via email at firstname.lastname@example.org to find out how we can help.