It has been well documented, that since the COVID pandemic the ATO have stressed the importance of businesses addressing their tax debts… and now they are spilling the tea to external debt collectors.

Anthony O’Brien, Small Business and Personal Finance writer at Money Magazine, recently shared some valuable insights into the ATO’s actions.

Some good points to share:

• Firstly, ignoring the ATO could land you in hot water. We get it, dealing with financial issues – particularly debt, can feel overwhelming, especially when you are unsure of what action to take. However trust us, it is crucial not to ignore your debt.

Here are some of the consequences for ignoring the ATO:

• Your business’ credit rating could be impacted
• You might find it tough to borrow money in the future.
• You could lose suppliers, which could seriously mess with your business operations.

Now the ATO has recently revealed that they will engage external debt collection agencies. They are not just sending out reminders anymore, they mean business. If your tax debt is over $100,000 and is overdue by 90 days, the ATO can disclose your debt to Credit Reporting Agencies, making it visible to existing creditors and subsequently prevent you from accessing future lines of credit.

Unfortunately, there are long-term consequences. Poor credit ratings do not just vanish. They could come back to haunt you when you are trying to secure a loan down the line. You can check your current business credit score using tools like the one offered by OnDeck Australia.

Although it all seems alarming, there is a solution. Thankfully, it is not all doom and gloom. We are here to help you navigate your tax debt.

Whether it is: reducing your tax debt, setting up a payment plan, even preventing legal action, we have your back.

Our team knows their stuff, and we will work with the ATO to get you the best possible outcome.

So do not wait around.

Reach out to us today, and let’s tackle this together before it becomes a bigger issue.

Tax Assure can tailor a solution to your situation and help you or your business to alleviate the burden and stress of tax debt. Our team of specialists can negotiate with the ATO on your behalf, reducing interest and penalties and find the best outcome for your tax problems.  

Seek professional help from Tax Assure in order to address your tax debt in 2024. Reach out to one of our team for a confidential and obligation free consultation.

Contact us today for a better financial future.