As per new legislation recently announced by the government, the Australian Taxation Office (ATO), going forward, will be allowed to disclose any data regarding the tax debts of certain businesses to relevant credit reporting officials.
The annual financial review enclosed a proposal in order to permit the ATO to reveal such information on companies who have failed to communicate with the ATO to attempt to manage these debts. The new legislation will come into force from the 1st of July, 2017. These new measures will primarily only apply to companies that are officially registered in Australia that owe tax repayments of over AUD$10,000. The debt must also be overdue by a minimum of 90 days.
The objective of the scheme is to enhance the integrity of the Australian tax system. ‘Companies that refuse to pay taxes have an unfair advantage over those that do pay.’ the Government concluded.