From 1 July 2017, the ATO are to disclose to credit reporting bureaus the tax debt information of businesses that have not effectively engaged with the ATO to manage these debts. This measure will initially only apply to businesses with tax debts of more than $10,000 that is at least 90 days overdue.
Headlines are warning Accountants about ‘very serious’ tax debt laws, and despite some believing a degree of leniency will be applicable, accountants have been urged to help clients get their tax debts under control ahead of changes to the ATO’s ability to disclose tax debt information to credit reporting bureaus, or risk serious and inescapable consequences.
The measure will initially only apply to businesses with Australian Business Numbers and tax debt of more than $10,000 that is at least 90 days overdue.
Businesses that fail to address outstanding tax debts prior to FY2017-18 should expect their credit rating to be adversely affected.
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