A Tax Debt Transparency Measure has recently been announced by the government to start taking effect from 1 July 2017. This measure will allow the ATO to disclose to credit reporting bureaus tax debts of businesses that have not have not made any effort to work with the ATO to resolve their tax debts.
The ATO will be able to report tax debt through an associated ABN where a debt exceeds $10,000 for a minimum of 90 days and the taxpayer is not effectively engaged. They has full discretion to disclose tax debt information; meaning that this measure in no way obligates them to disclose this information.
Specific circumstances and exceptions for disclosure will be confirmed through the consultation and design process, tax debts can be reported where the debt balance:
- is greater than $10,000 for at least 90 days
- relates to a taxpayer with a ABN (including individuals operating a business)
- is not under an active payment plan to repay the debt
- is not subject to a dispute with the ATO.
© Fitzpatrick Group 2017
Bryn deals directly with assisting small to medium business clients, whether in early stage or mature, in relation to their Accounting, Taxation, and Business Growth. If you’d like to speak with Bryn about growing your business, contact us