Disclosing business tax debt to credit agencies
On 24 July 2019, the Government introduced legislation which gives the Australian Taxation Office (ATO) the ability to disclose the tax debt information of businesses who do not pay their tax debts to credit reporting bureaus in certain circumstances.
As a result, the Treasury is seeking the community’s views on the exposure draft legislative instrument which sets out the class of business whose tax debt information can be disclosed.
The legislative instrument would only allow the ATO to disclose information when certain conditions and safeguards are met.
Obviously, there are a few issues within the consolation dealing with the class of business whose tax debt information can be disclosed and the safeguards and conditions:
- Ensuring the entity has not entered into a payment arrangement with the ATO
- Does not have a complaint with the Inspector-General of Taxation about the disclosure of debt information, and
- Has total tax debts of at least $100,000 which has been payable for more than 90 days.
The major accounting bodies, CPA and CAANZ, are currently working on submissions on our behalf as part of the consultation process to ensure business interests are not unfairly jeopardised. Copies of the submissions will be made available to the public on the Treasury website.
If you have any concerns or would like more information on this new legislation, our team of professionals are here to help – book an appointment.