From 1 July this year, the ATO will be able to pass on to credit agencies the tax debt information of businesses that have not effectively engaged with the ATO to manage these debts.
The criteria to be applied by the ATO is that a business has a tax debt greater than $10,000, the debt is older than 90 days, is not in dispute and the business has no payment plan with the ATO.
The disclosure of the debt is not automatic and will be at the discretion of the ATO. The ATO will notify a business that it intends to refer its tax debt to a credit bureau before it passes on the information.
Should any clients be in a position where they will meet the criteria outlined by the ATO from 1 July, 2017, then please contact our office and we can provide advice on the most appropriate course of action.