ATTENTION BUSINESS OWNERS .... ATO IS COMING
Wednesday, Mar 29, 2017
From July this year, it will enable the ATO to pass on to credit agencies the debt details of SMEs with tax debts that are more than 90 days overdue, that are not in dispute and where a payment plan has not already been established with the ATO.
This change will make it very difficult for those businesses to access credit and could even bankrupt some of them.
So what should small businesses do?
The ATO is offering a lifeline though for small businesses that fall into this category. If they contact the ATO before the end of June and organise a payment plan, they will not be named. The ATO’s aim is to help SMEs in debt before they become bankrupt, according to Deputy Debt Commissioner Robert Ravanello.“The disclosure is at the discretion of the ATO so it’s not automatic,” he said. “We will try to work with businesses before we disclose. We’ll contact them, try to engage them
“The disclosure is at the discretion of the ATO so it’s not automatic,” he said. “We will try to work with businesses before we disclose. We’ll contact them, try to engage them to deal with their debt, but if they don’t then we’ll disclose.”
Why is this happening?
Mr Ravanello said the move is also about protecting other small businesses. “If there are other businesses out there wanting to trade with a business that isn’t working with the ATO and has a large debt then if that’s not disclosed, they can start trading with the business only to find out that we may make them insolvent later,” he said. Mr Ravanello urged small businesses with tax debts to contact the ATO as soon as possible. “What we’re trying to do here is we want the businesses to engage with us … because those that do contact us we’ll support them,” he said. Businesses will be notified by the ATO before their details are passed on to credit agencies.
HOW CAN ASSURED HELP ?
- We can help you in entering into a payment arrangement with the ATO
- We can help you avoid these debts
- We can help raise funds by refinancing and paying the debt out
- We can help negotiate with the ATO to reduce the debt
If you feel that your accountant is not able to provide you with some options or the right solutions to help you with the ATO debt or grow your business with strategic advice make sure you contact us.
For more information on how we can help you, contact our office on (08) 8384 4400 or via email email@example.com
Source : SBS
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