Businesses in debt with the Australian Tax Office (ATO) could be damaging their credit score. This was announced by the ATO as the organisation is about to notify credit bureaus of the debt of more than 9,000 businesses.
The ATO says that as of July 2023 it has issued notices of intent to disclose business tax debts to more than 22,000 businesses with a tax debt of at least $100,000 that is overdue by more than 90 days.
Businesses need to pay their debt or enter into an arrangement with the ATO within 28 days of receiving the notice of intent, says the ATO.
The ATO expects more than 50,000 notices to be issued in the 2023-24 financial year.
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