ATO: Disclosure of business debts

October 13, 2022

The ATO is currently writing to 8,500 businesses with active ABN whose tax debt meets the criteria for disclosure. This includes companies, partnerships, trusts and sole traders. Agents may receive the letter if they represent these businesses.

This follows on from July, where the ATO shared an update about its Disclosure of Business Tax Debts program of work. This initiative involves disclosing debts to credit reporting bureaus where businesses do not take action to manage their debt.

More specifically, the ATO may disclose the tax debt information of a business if they owe at least $100,000, when it has been overdue for more than 90 days.

The letters explain the potential for the ATO to disclose their tax debt information and outline what they need to do, including how to seek help and assistance. The ATO will not disclose the information of businesses if they are engaging with them to manage their debt.

Over the coming weeks, the ATO will then make phone contact with those who are not effectively managing their debt after receiving their letter.