The Australian Taxation Office ATO has warned businesses with tax debts. The Government’s principal revenue collection agency revealed that it has issued Notices of Intent to disclose business tax debts. At least 9,000 businesses are at risk of having their business debts sent to the credit reporting agencies for the month of October.
ATO warned the businesses:
- That we are behind on their tax or superannuation obligations.
- Received an intent to disclose notice.
- Businesses that did not pay their debt or entered into an appropriate payment arrangement within 28 days.
According to Assistant Commissioner Jillian Kitto, there is only one way to prevent a business’s tax debt from showing up in credit rating checks. Individuals must pay their business debts or engage with the ATO.
“We encourage anyone with debt to get in touch with us as soon as possible. We give businesses ample opportunity to re-engage with us. However, those who show continued and ongoing disregard for their tax and super obligations will have their debts disclosed,” he said.
“There is over $5 billion owed by businesses who currently meet the criteria for disclosure. We must draw a line in the sand to protect the Australian community. Furthermore, we also need to protect other creditors. Lastly, we need to ensure a level playing field for businesses who do the right thing.”
On the other hand, this previous post about resolutions in resolving tax-related issues will come in handy if you have a tax-related dispute.