Does your business have tax debts of more than $100,000?

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In late 2019, the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No.1) Bill 2019 was passed. This bill contained a measure that gives the ATO the authority to report business tax debts of more than $100,000 which are at least 90 days overdue to credit reporting agencies. 

The law allows the ATO to treat tax debts alongside other forms of debts, encouraging business to pay their debts in a timely manner and giving credit providers more information to assess the credit rating of a business. 

Tax debts include income tax debts, activity statement debts, superannuation debts, fringe benefit tax debts, and penalties and interest charged. 

It has however only been in the past 18 months since the passing of this law that the ATO has begun utilising these new powers. As such, small businesses have begun receiving notices from the ATO warning they will disclose their tax debts to credit reporting agencies if they do not cooperate to manage the debt. 

Please contact your Hall Chadwick QLD advisor immediately if you do receive an intent to disclose notice from the ATO so we can discuss your options.

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