Over the last 2 years the ATOs outstanding tax debt has grown to over $34 billion – the largest it’s ever been.
During much of the pandemic the ATO has suspended collections activity but this grace period is coming to an end. In an effort to call in the billions in outstanding tax debt collections activity is restarting and this includes acting on their ability to report to credit reporting agencies.
What it means if you have outstanding tax debt
In 2019 laws were amended that allowed the ATO to report a business to credit reporting agencies.
- You can be reported if
- You owe more than $100,000 in tax
- Have an ABN
- If your outstanding tax debt is more than 90 days late
- You don’t have a payment plan in place or aren’t negotiating with the ATO to put a payment in place.
What kind of tax debt does this include?
A range of outstanding tax debt type falls under this treatment including:
- Income tax debt
- Outstanding GST
- Superannuation payments
- Fringe benefit debts
- And of course penalties and interest charges
How can you avoid punitive action from the ATO
Don’t put your head in the sand and avoid contact.
Trying to avoid the ATO will only have your account flagged for escalated action and further non compliance can result in garnishee notices to banks, your customers and even wind up notices.
Be proactive about negotiating payment plans but know there are loan types available to payout tax debt.
We are experts in getting finance fast to payout ATO tax debt – including penalties and interest.
Book a call here https://darkhorsefinancial.com.au/contact-us/ or call Jeff on 0439062771 for a confidential conversation about your circumstances.
Don’t put your head in the sand and try and avoid the ATO over your outstanding tax debt.
Do be proactive about arranging a payment plan.
If a payment plan that works for your business can’t be negotiated with the ATO there are loans available to pay out tax debt.