ATO Disclosure of Business Debts

Treasury has released an exposure draft of the Treasury Laws Amendment (Tax Transparency) Bill 2018 which will authorise the Australian Tax Office to disclose business tax debts to credit reporting bureaus where the businesses have not effectively engaged with the ATO to manage their debt.

What if it’s passed?

The Bill will amend the Taxation Administration Act to allow taxation officers to disclose the tax debt information of a business to credit reporting bureaus when certain conditions & safeguards are satisfied.

 

Who will it apply to?

Business taxpayers with an ABN and a tax debt where at least $10,000 is overdue by 90 days.

 

What must the ATO do before disclosing the debt?

The ATO must ensure the taxpayer is made aware that the Commissioner is considering disclosing their information and give the taxpayer an opportunity to engage with the ATO to prevent their debts from being reported. 

It is expected that tax debt amounts that are being disputed in various forms, and tax debt amounts that are being paid under a payment arrangement will not be disclosed.

 

What must the ATO do before disclosing the debt?

The ATO must ensure the taxpayer is made aware that the Commissioner is considering disclosing their information and give the taxpayer an opportunity to engage with the ATO to prevent their debts from being reported.

 It is expected that tax debt amounts that are being disputed in various forms, and tax debt amounts that are being paid under a payment arrangement will not be disclosed.

When would a disclosure be permitted?

If all the following procedural conditions are met:

  • The Commissioner has notified the taxpayer at least 21 days before disclosure

The Commissioner has consulted with the Inspector General of taxation

 

Get professional advice

 

We can assist you with your taxation affairs and in dealing with the Taxation Department.

 

 

Where can I get further information?

https://www.ato.gov.au/General/New-legislation/In-detail/Other-topics/Improve-the-transparency-of-tax-debts/

 

 

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