Businesses are being urged by the Australian Taxation Office (ATO) to comply with their tax and superannuation obligations in order to avoid having their debts disclosed to credit reporting agencies.
Since July 2023, the ATO have returned to regular debt collection procedures, and have issued Notices of intent to disclose business tax debts to over 22,000 businesses with a tax debt of at least $100,000 that are extended over a 90 day period.
This month, debts from over 9,000 businesses are anticipated to be disclosed.
According to ATO Assistant Commissioner Jillan Kitto, making payments with the ATO is the only solution in avoiding your businesses’ tax debt to become evident in credit rating checks.
Businesses in debt are to contact the ATO immediately, as Kitto stated, ‘We aim to collaborate with businesses to assist in managing their debts’. This enables a sufficient chance for businesses to reconnect with the ATO. Nevertheless, for those who persistently and continuously neglect their tax and superannuation responsibilities, their debts will be disclosed.
The ATO anticipates that over 50,000 notices of intent will be issued in the 2023-24 financial year.
Although during the pandemic, the ATO’s priorities were shifted from debt collection to providing stimulus payments and assisting with tax matters, it is essential to reestablish the practice of timely tax payments.
Businesses that currently meet the criteria for disclosure have accumulated debts exceeding $5 billion.
Therefore, if you have an outstanding tax debt, the ATO strongly urge you to pay it or reach out us so you can be provided with the right support.
For more information about these measures click here.