Small business operators know that sitting back and hoping their business tax debts will just go away never works. Procrastination will only make things worse, so take your power back and call us at Wisdom Business Consultants today. We want to help you save your home, sleep well at night and continue operating the small business you love.
Don’t Let Unpaid Business Taxes Pile Up
After the past two or more rough years Australian small businesses have endured, many are struggling with Australian Government business tax obligations and business debt as they try to keep their heads above water.
Debts have piled up, and many just cannot see a way through it all, and they dread scenarios such as the ATO reporting them to credit reporting bureaus. If this is you, we urge you not to suffer alone worrying about your business finances and business tax debt.
At Wisdom, we are specialists at reaching out to your creditors on your behalf. We know how to negotiate with them to set up a payment plan to give you time to get on top of things and pay your debts. We also negotiate to have your debts and interest reduced and work to create affordable payment plans to pay off your debts.
Disclosure of Business Tax Debt
If your business meets certain benchmarks, the Australian Taxation Office (ATO) can decide to disclose your debt information and non-payment to credit reporting agencies, also called credit reporting bureaus. However, if you are engaging with the ATO to resolve your business tax debt, the ATO will not report your business to the credit reporting agencies.
Unless you are engaging with the ATO either personally or through a tax debt expert like Wisdom Business Consultants to devise a business management plan to repay your tax debts, you will be reported.
You will be reported if:
- You are not an excluded entity, and you have an Australian business number (ABN).
- You haven’t engaged with the ATO to manage your business tax debt.
- You have one or more tax debts overdue by more than 90 days.
- Your business owes the ATO at least $100,000.
- You have not consulted the Inspector-General of Taxation Ombudsman (IGTO) to Complain about the ATO
- You do not have an active complaint with the IGTO about the ATO’s intention to report your business tax debt information.
An excluded entity is either a:
- Deductible gift recipient.
- registered charity.
- complying superannuation fund.
- government entity.
The reason it’s crucial to get in touch with us at Wisdom if you have overdue tax debts is that the ATO may decide not to report your tax debt information if you are experiencing hardship or cannot pay your tax debt under exceptional circumstances.
If you are seriously ill or have sustained losses due to natural disasters or a family tragedy, the ATO may look kindly into your situation and agree to a debt management plan.
What Engaging with the ATO Means
Effectively engaging with the ATO means that you have:
- A payment arrangement that you are complying with.
- Applied to be released from your tax liabilities.
- Your tax debt relates to an active objection against a taxation decision regarding overdue amounts.
- An active review with the Administrative Appeals Tribunal (AAT) or active legal action to appeal to the Court.
- An active review with the AAT of a decision that may affect the amount of a non-complying superannuation fund tax debt.
- An active complaint with the IGTO in relation to the tax debt.
Choose Wisdom For All Your Business Tax Advice
At Wisdom, we have over 50 years of collective taxation industry experience in helping businesses, sole traders, company directors and individuals with specialised, professional and up-to-date taxation advice through our direct services and Business Consulting Packages. Contact us today so we can take the business debt burden from your shoulders.
