What is it?
The ATO has begun writing letters to businesses that may meet the criteria to have their tax debts disclosed to Credit Reporting Bureaus (CRBs). This letter is being sent to businesses with tax debts and meet the ATOs criteria for disclosure. In the letter there will be information regarding how to effectively manage the debt with the ATO. Disclosure to CRBs can be avoided by making full payment or entering a payment plan.
What steps will the ATO take?
Businesses that do not take steps to manage their debt will remain eligible for disclosure. A formal Intent to Disclose Notice will be provided just before the ATO discloses any tax debts. If you receive a formal Intent to Disclose Notice, it will say ‘Act now or your tax debt or your tax debt will be reported to credit reporting bureaus’. You will have 28 days to contact the ATO to avoid the debt being reported, and the ATO will help you along with your accountant to manage the debt and understand the next steps.
What can you do?
The most important step is to get into contact with the ATO and your accountant before the debt becomes unmanageable. There is also information on the ATO website and options to set up payment plans.
It is important to note that the general interest charge will continue to apply to all balances. You will want to bring your balance to zero to prevent any further interest charges.
For more information you can go to the ATO website here.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au