New Reporting Laws for the Disclosure of Business Tax Debts
Under new reporting laws that were passed in late 2019, the ATO now has the ability to disclose tax debt information of businesses to registered credit reporting bureaus (CRBs) if certain criteria are met. The new law comes into effect from the 21st of February 2020.
It is important to note that businesses that have entered into a payment arrangement or that are actively communicating and engaged with the ATO in respect of their outstanding
debt will not have their debt information reported.
Businesses that have their tax debt reported by the ATO may run into significant difficulties in obtaining financing from lenders and credit from key suppliers as the tax debts become
visible. It may also be the case that existing finance or credit arrangements are suddenly withdrawn.
Read our latest newsletter to find out if this change may affect your business.