Micro business delinquent tax debtors
The Australian Taxation Office is one of the unheralded financiers of the business sector, though the rate of growth in credit supplied by the ATO is growing more slowly than the demand for the credit supplied by the private sector. Total tax debts due to the ATO increased by six per cent to $17.5 billion. The ATO said this escalation in debt “was directly attributable to a group of taxpayers who have continually remained in debt. This group typically comprises small business operators with quarterly tax liabilities who elect to ignore their obligations and meet business costs other than tax.” Around 39 per cent of micro businesses have a debt with the tax office at any point in time. In contrast, the ATO said the small to medium enterprises segment has a good record of paying tax on time.