Tax debt has emerged as one of the biggest drivers of corporate insolvencies over the past year, with the latest data from Alares Insights showing April tracked at 50 per cent higher than pre-COVID levels.
According to Patrick Schweizer, author of Alares Monthly Credit Risk Insights, there has been a sharp increase in the number of companies seeking small business restructuring and voluntary administration since the beginning of this calendar year, following an aggressive push by the Australian Taxation Office (ATO) to recover the record tax debt owed by businesses.
The uptick was noted by Schweizer in February when insolvencies jumped 50 per cent in the highest ever monthly increase recorded by the report. Insolvencies peaked in…
