Businesses with outstanding tax debts subject to disclosure which could impact credit ratings

The Australian Tax Office (ATO) may report businesses to credit reporting bureaus (CRBs), also known as credit reporting agencies, if:

• The business holds an Australian Business Number (ABN) and are not an excluded entity
• The business has tax debts of $100,000 or more that have been outstanding for more than 90 days.

Businesses that are subject to this disclosure will have their credit score affected.

The ATO will only report business tax information to CRBs that are registered with the ATO and have entered into an agreement that complies with the ATO’s privacy standards and details the terms of the reporting.

Businesses already engaged with the ATO to manage their tax debts (e.g. entered into a payment plan or disputing their tax debts) as well as complying superannuation funds, government entities, registered charities and deductible gift recipients, are not subject to this measure.

The ATO believes such disclosure of overdue tax debts will:

• Support businesses to make more informed decisions about who they are doing business with by making overdue tax debts more visible.
• Encourage taxpayers to engage with the ATO to manage their tax debts to avoid having their tax debts disclosed.
• Create a more level playing field where businesses who pay their tax on time are not disadvantaged by those who do not.

If your business has significant tax debts outstanding or you have received a written notice from the ATO that they intend to disclose your tax debt to the CRBs, please contact your Crowe adviser. For assistance checking and managing your tax debts and obligations, submit this form and a member of our Tax Advisory team will get back to you.