What does owing to the ATO mean? Well, here’s what you should know. 

Over 22,000 businesses in Australia are facing the risk of being publicly named and shamed by the Australian Tax Office (ATO) for failing to pay their unpaid debts. 

The ATO has issued notices to these businesses, warning them that their debts will be disclosed to credit reporting agencies if they are not paid within 28 days.

The ATO’s crackdown on unpaid debts comes as the agency is trying to recoup over $5 billion in unpaid taxes. 

It has said that it will not take disclosures lightly, but that it is necessary to protect the Australian community and other creditors to ensure a level playing field for businesses who do the right thing.

Businesses that are impacted by the ATO’s measures can avoid their debts being listed in credit rating checks by paying or engaging with the tax office within 28 days of the intent to disclose notice being issued. 

However, those businesses that continue to disregard their tax obligations will receive the ATO penalty and have their debts disclosed publicly.

The ATO’s scheme on unpaid debts is a reminder to all businesses that it is crucial to pay their taxes on time and in full. 

Failing to do so can have serious consequences, including damage to your business’s reputation and difficulty obtaining credit in the future.

Are you a business owner struggling with debt? AVA Advisory can help.

Our expert debt and insolvency advisors can help you develop an ATO debt payment plan to repay your debts.

Contact us today at 1300 181 220 for a free consultation!