The Australian Taxation Office (ATO) has reaffirmed that it is seeking the ability to report taxation related debts of businesses to Credit Reporting Bureaus (CRBs).
The measure, once proposed to apply from 1 July 2017, has not yet been presented to Parliament and will be the subject of public consultation as to the specific circumstances and exceptions to the reporting of tax debts and defaults.
The ATO has stated that it will only disclose tax debt information of a business to a Credit Reporting Bureau if the tax debt is over $10,000 and overdue by more than 90 days. Importantly, the ATO will not disclose the debt if the business has effectively engaged with the ATO to manage its tax debt.
We urge you to contact your usual Hanrick Curran advisor or alternatively Jamie Towers on 07 3218 3900 before the measures are legislated so that we can assist you with establishing a payment arrangement or in seeking alternate financing to avoid any adverse impact on your credit profile.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.