As if the business called the ATO (Australian Tax Office) not being a lawful entity not enough, it's now going to carry out some unlawful actions against the good people of Australia, and the mainstream media stays silent on this huge issue that would effect tens of thousands of businesses.
You can read the article from 16 Feb 2017 posted on linkedin.com of the headline:
Australian Tax Office to bankrupt and destroy 1'000's & 1'000's of Small and Medium Size Businesses in 2017/2018-Every Australian Business is at RISK!
Many Accounting practices (let alone the Business Owners) are not aware of this piece of legislation and more importantly the dire effects it will/could have on their Small and Medium size business clientele. The current Credit Reporting process in Australia, where a Credit Infringement is listed, effectively stops a Business from raising any sort of credit facility that maybe necessary to allow the business to expand/grow/expand & most importantly function. Furthermore given the reluctance of the various Credit Reporting Bureau's to remove such entries once an alleged debt has been paid/satisfied/settled/extinguished, and to keep such "infringements" listed for five years (unless they are instructed in this case to remove the infringement by the Australian Tax Office) will prevent (or make exceptionally challenging) these businesses from obtaining any competitive finance facilities for five years. This will also cause the collapsing of Credit Scores which the finance industry is now relying upon more heavily since July 1st 2016 when assessing prospective borrowers applications and assessments!
The further danger that now exists under the so-called "positive credit reporting system" which is now in place (former Prime Minister Gillard responsible for this one), that once an infringement such as this is listed, particularly from the Australian Tax Office, many credit providers will immediately issue a NFD (No Further Drawings) block on Credit Cards and any Lines of Credit Facilities (we know Citibank does this with any type of credit infringement which is listed, automatically) whilst you can pay down the facility you will be prevented from re-drawing out again, those businesses with Overdraft facilities run the risk of having their facilities called up immediately for repayment (Overdrafts are "an at call facility) which if the business fails to comply, then run the risk of having an Administrator being appointed to the Business (no wonder the Insolvency Industry is salivating and frothing at the mouth with all this new impending business they are going to be inundated with) resulting in the business being destroyed in the process.
The starvation of credit facilities to allow a business to function normally will be removed and vanish, should the Australian Tax Office be allowed to list any "Credit" infringement. Unless the business has substantial cash reserves (and we know that the majority of small and medium size businesses do not have this luxury) will see a calamity occur.
This is, in our view the worst piece of legislation amendment that Prime Minister Turnbull and Treasurer Morrison could allow and support, for a Government that says it supports small and medium size businesses in Australia, which represents 70% of the Nations economy.
Unless we can get the Turnbull Government to reverse this damaging arrangement, business owners have until June 30th 2017 to get their affairs in order. Again more time required to complete back-end paperwork rather than concentrating on running their businesses to achieve a profit in what is already a very challenging and difficult business environment.
My friends at www.wefixcredit.com.au are gearing up for what is anticipated to be an onslaught of rescue missions, which could otherwise been avoided if Turnbull and his cronies had not capitulated to the Australian Tax Office demands! Please contact www.wefixcredit.com.au and seek their assistance and advice as to how to prepare for this impending catastrophe in the new financial year.
Remember as at the date of this posting, there is only 100 days or so away, not much time to get your affairs in order. Better still, lodge an immediate protest to your local federal member and senator and demand that Turnbull and Morrison reverse this diabolical agreement! Most importantly contact your Accounting Advisors and bring them up to speed if they don't know about this and of course please share this article so that every Australian Business Owner knows about this. Anyone wanting further clarification please contact me on firstname.lastname@example.org