You may have heard about the ATO's new policy to disclose
non-compliant businesses with tax debts greater than $100,000 to
Credit Reporting Bureaus. This is another tool available to the ATO
to encourage taxpayers to manage and pay outstanding debts.
Recent market volatility, interest rate hikes, inflation, and
ballooning tax debts through Covid, makes this a timely reminder
for business and their advisors.
The ATO resumed debt collection activity in 2022, following a
lengthy hiatus. The ATO has begun issuing warning letters, Director
Penalty Notices and, recently, winding up applications. In
negotiating payment arrangements with small to mid-sized taxpayers,
the ATO are seeking mortgages over real property or bank guarantees
as security, which is becoming challenging for business owners in a
softening property market, with tightening credit.
