More than 22,000 businesses risk losing money after the tax office threatened to name and shame those who fail to engage and pay debts to recoup the more than $5 billion they owe.
Subscribe now for unlimited access.
or signup to continue reading
The Australian Tax Office is shifting back to its business-as-usual debt collection following an era of stimulus payments and tax assistance during the COVID-19 pandemic.
The agency has issued more than 22,000 businesses with notices warning they face being disclosed to credit reporting agencies for tax debts of at least $100,000 that are overdue by more than 90 days.
A disclosed debt can impact a business's ability to receive finance and cause it to lose suppliers.
More than 9000 businesses are expected to have their debts disclosed this month, according to the ATO.
The tax office is $5 billion out of pocket from businesses that currently meet the criteria for disclosure.
Impacted businesses wanting to avoid their debts being listed in credit rating checks must pay or engage with the tax office within 28 days of the intent to disclose notice being issued, ATO Assistant Commissioner Jillian Kitto said.
"We give businesses ample opportunity to re-engage with us however, those who show continued and ongoing disregard for their tax and super obligations will have their debts disclosed," she said.
"While we do not take disclosures lightly, consequences will apply to businesses who refuse to pay or engage with us."
The ATO expects more than 50,000 notices of intent will be issued in the 2023-24 financial year.
'Through the pandemic, we shifted our focus from debt collection to stimulus payments and assistance with tax, but it is now time to re-establish the culture of paying tax on time," Ms Kitto said.
"We must draw a line in the sand to protect the Australian community and other creditors, and to ensure a level playing field for businesses who do the right thing."
Australian Associated Press
