9 December 2019
The ATO now has the power to disclose tax debt information of a business to registered credit reporting bureaus (CRBs).
Businesses who are currently working with the ATO to manage their tax debts will not have their information reported on.
The measure has been brought in to encourage businesses to work actively with the ATO in managing their tax debt with a sustainable payment plan.
It is also designed to reduce late or non payment of tax debts, and provide greater visability for the business community when conducting business activity with others.
The ATO can disclose business tax debt information if all of the below criteria are met:
- The business holds an ABN, and is not an excluded entity
- The business has $100,000 or more owing in tax debts, overdue by 90+ days
- The business does not have an effective tax debt management arrangement in place with the ATO
- The Inspector General of Taxation is not considering an ongoing complaint about the proposed reporting of that business
Before the ATO reports to a CRB, they will advise the business in writing and give 28 days for the business to engage with the ATO before the information is reported.
The ATO will require CRBs to be registered with the ATO and have an agreement in place outlining the reporting terms before they will provide tax debt information.
For more information, visit the ATO website
Contact the team at Shakespeare on 08 9321 2111 if you would like to discuss how this may apply to your individual circumstances.
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