Tax Debt Loans for business
Do you still have trouble paying your business tax debt? The appropriate loan might help, this is what you need to know.
Credit agencies set to see tax debts
Potentially destroying your credit worthiness and business
Credit reporting agencies are now allowed to receive details regarding any business tax debts owing by your business above a certain level. A move following approval by the Parliament of a bill about debt disclosures including small business CGT concessions.
Businesses that have one or more tax debts of at least $100,000 and have been overdue by more than 90 days could now see their tax debt information disclosed.
Entities that do not effectively engage the ATO in respect of the tax debt will be up for disclosure.
Tax debts will include income tax debts, activity statement debts, superannuation debts, fringe benefits tax debts, and penalties and interest charges
Not paying your tax debt, regardless of how large or small your company is, can have a detrimental effect on your cash flow and business operation. As of 2019, the Australian Taxation Office (ATO) will disclose tax debt information to the credit reporting agencies, which will have a significant impact on the credit rating of a business and the ability to obtain finance. It, therefore, goes without saying, that if your company has a substantial tax liability over $100,000 that you cannot cover, you should first contact the Australian Taxation Office (ATO) to see if you can arrange a payment plan. If you are not eligible for one of these programs or would like to pursue the other options, a tax debt loans are an immediate solution.
As such, if your business has a large tax debt that you can't pay, you should first call the Australian Taxation Office (ATO) to see if you can arrange a payment plan. If you don't qualify for one of these plans or want to consider your other options, tax debt loans are an alternative option.
Jotham Lian at Accounts Daily