In July, my colleague Hayden Asper, wrote in this publication that when it came to collecting outstanding tax debts, while the Australian Tax Office had cut businesses some slack, this generosity wasnt going to last forever. And it hasnt.
For a while, the ATO had been sympathetic about uncertain cash flows and made some changes to its normal practices, such as suspending its normal collection strategy. But this is now changing, and it’s revealed it’s now using a rule that was passed in 2019 by the federal government to crack down on businesses that fail to pay their tax debts.
Under the rule, the debts of businesses can be disclosed to credit reporting agencies by the ATO to allow them to measure or update credit worthiness. The info…
Read the full article at: https://www.accountantsdaily.com.au/columns/16143-time-for-some-tough-talking