Etairos Accounting and Finance
we guide you to a better future
Etairos Accounting and Finance
Strength in Numbers
Interested to know how an SMSF
can work for your future?
Are you looking for something better from your
Accounting and Finance experience?

ATO looks to advise credit agencies

Added on by

 

The federal government has released draft legislation to allow the Australian Taxation Office to tell credit reporting bureaus that a business is not actively trying to repay an outstanding tax debt. Originally outlined in the 2016-17 Mid Year Economic and Fiscal Outlook, the government estimated in December 2016 that the policy would cost $27 million over four years to implement, but would produce a revenue gain of $63 million over the forward estimates. The aim of the legislation is to encourage more businesses to actively work with the tax office to repay their debts, with the explanatory memorandum for the bill claiming it will also allow credit providers "make a more complete assessment of the credit worthiness of a business”.

The draft measures would apply to cases where a business with an Australian Business Number (ABN) has an outstanding tax debt of $10,000 or more, and this amount has been overdue for more than 90 days. In these circumstances, the ATO would be able to disclose details of the business to credit agencies if the business was not actively working with the tax office to repay the debt. A number of other criteria would have to be fulfilled before a report was made, including writing to the taxpayer 21 days in advance to tell them their information would be passed on to credit reporting bodies.

In a statement, The Minister responsible, Kelly O’Dwyer said the move will encourage more businesses to speak directly with the ATO about their tax debts.

Council of Small Business Australia chief executive Peter Strong is pleased there has been significant consultation with the small business community about the policy.

Regardless of whether this legislation is passed or not, the number one takeaway for all small businesses should be to discuss payment concerns with the tax office as soon as they arise. Pick up the phone even before the ATO even calls you. Small business should not be hesitant to speak openly with the tax office about their situation. 

(Source: Smart Company 12 January 2018)

Latest from the blog

Home loans for self-employed 01 August 2018

As a self employed borrower, the Structure you present to a potential lender can vary greatly from a simple sole trader to complex groups involving... READ MORE

A guide to borrowing to build your new home 11 June 2018

Building a brand-new home has long been a dream for many of us. To make that dream become a reality however, most of us will... READ MORE

Budget 2018 09 May 2018

  The Federal Treasurer, Mr Scott Morrison, handed down his third  Budget last night - 8 May 2018. Mr Morrison said the Budget is... READ MORE

“Etairos are prepared to go above and beyond to make sure you are taken care of and allow you to get on with running your business. their team is fast, accurate and professional so in the most important part of anyone's business, finance and accounting, you know you are in safe hands. ” more testimonials

Clipper Motor Yachts, Coomera

Call  1300 55 22 30  now