ATO to report tax debt to Credit Agencies

The Australian Taxation Office (ATO) has announced that from 1 July 2017 they can disclose to Credit Rating Agencies the tax debt information of businesses that have not effectively engaged with the ATO to manage those debts.

Previously the right of privacy covered taxpayers’ affairs but the announcement was made by the Federal Government during last years mid-year economic and fiscal outlook.

The current total outstanding tax debt owed to the ATO is $19.2 billion.

Initially the ATO will report Businesses with an ABN and a tax debt of more than $10,000 that is at least 90 days overdue. If your business is reported, these notifications will then remain on credit files for 5 years.

Don’t bury your head in the sand. If your business has tax debt or cashflow issues, contact your Highview Accountant today on (03) 5990 1000 to discuss your options – we are here to help.

Source: www.ato.gov.au