Earlier this year the Federal Government announced its plans to enable the ATO to disclose small business tax debt information to credit reporting agencies. These rules commenced on July 1st and it can have far reaching consequences for businesses. If your business has an outstanding ATO bill and the ATO doesn’t grant an extension you may find yourself in a bit of strife.
Initially the ATO will focus on businesses with Australian Business Numbers and tax debts of more than $10,000 that are at least 90 days overdue. Small businesses make up the majority (65%) of taxpayers with debts, so the ATO has decided this is a key area of focus with 72% of small business tax liabilities paid on time.
While having an ATO debt is not ideal, this doesn’t disqualify you totally from borrowing money. A traditional bank won’t lend to a borrower with an outstanding ATO debt, however there are lenders who will. It’s important you act and not place your head in the sand, so we can help you avoid possible credit rating defaults.
We can help you refinance your tax debt to put you back on the front foot, back in control.
One way of doing this is to pay out the tax debt with a short-term loan. This enables you to pay off the ATO debt and have a clear ATO portal (which many lenders may ask to see – to ensure no tax debt owing).
Having an ATO debt can be a tricky situation however, with some strategic management of the debt it is possible to get back on track and make it possible to access finance for more equipment and vehicles for your business.
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