Tag Archives: Taxdebt

ATO to resume collecting aged debts

Taxpayers with aged debts that the ATO had paused collecting or put on hold should be aware that offsetting aged debts against tax refunds or credits has now resumed. Letters were sent out in May 2022 to remind taxpayers that they have aged debts and that June 2022 will see the recommencement of debt collection. The aged debts can be offset either from ATO accounts or credits from other government agencies, although the debt will not be offset if the only available credit relates to a Family Tax Benefit amount.

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Tax debts may affect business credit score

The ongoing COVID-19 pandemic has caused uncertainty in many parts of the economy and has led to what many experts term a “two-speed economy”, while some businesses are recovering well, others continue to suffer from the effects. If your business has had issues paying debts, or have prioritised trade debts ahead of tax debts, remember that these actions may lead to a lasting impact on your business’ credit score. The ATO is able disclose business tax debts to credit reporting agencies if certain conditions are met including non-engagement.

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