CreditorWatch analysis of ATO tax debt defaults has revealed that 33.6 per cent of private businesses have collapsed over the last year after failing to address significant tax debts.
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The research found that 1,715 out of 5,097 businesses with outstanding tax debts that exceeded $100,000 had become insolvent or had voluntarily closed.
CreditorWatch attributed this to the ATO’s lenient debt enforcement approach during the pandemic, which had significantly surged with the ATO being owed $52 billion in outstanding tax liabilities.
According to the data, $34 billion of this amount was owed by small businesses put under pressure when the ATO significantly…
