According to the information shared in our February 2017 newsletter, starting from 1 July, the Australian Taxation Office (ATO) will have the authority to disclose business tax debts to credit reporting bureaus. This new provision will come into effect under specific circumstances. It applies to individuals or entities with an Australian Business Number (ABN) who possess a tax debt exceeding $10,000 which has been overdue for more than 90 days. However, taxpayers can avoid such disclosure by effectively engaging with the ATO to manage their debt, for example, by seeking assistance from a tax advisor and entering into a suitable payment arrangement.
The ATO’s latest information on this new procedure can be found on their website here.
They have undertaken to notify a business that meets the reporting criteria to give them 21 days to respond before the tax debt will be reported.
If you have any concerns about the new rules, please get in touch with us as soon as possible.
Kreston Stanley Williamson
*Correct as of June 2017
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
