This is what the ATO strategy is, and it’s not good news. The ATO will first attack a business’s ability to operate and borrow money – weakening a business before it goes through the longer process of chasing money.
At Your Business Angels, we see the irony of this. A business unable to borrow or operate will be weaker when paying the tax debt.
The ATO expects to disclose 9,000 businesses to credit reporting agencies this month with $100,000 or more debts. It has warned sternly that it was “back to business” regarding debt collection.
That is this month, and then there is always the next month.
As of July, the ATO has issued notices of intent to disclose to more than 22,000 businesses with debts of at least $100,000 overdue by more than 90 days.
The ATO also expects to issue more than 50,000 notices of intent this financial year, with more than $5 billion owed by businesses that meet the disclosure criteria.
Being reported to a credit agency can significantly impact your credit history and credit score.
Credit agencies, Equifax, collect and maintain information about your credit behaviour.
This affects your creditworthiness and financial reputation.
Being reported negatively to a credit agency can result in loan denials or require you to pay higher interest rates on loans, including mortgages, auto loans, and personal loans.
Landlords and property management companies often check credit reports as part of the rental application process. Negative information can lead to difficulties in securing rental housing.
A negative credit report can lead to financial stress, as it can limit your access to credit and result in higher costs for borrowing money. This can make managing your finances and meeting your financial goals harder.
At Your Business Angels / Fresh Numbers, we are ready for those who have a tax debt – find a solution. Having a plan, an agreement or another plan helps protect you and the business you rely on to support your family.
Your client coordinator and accountant are there, ready to help.
