Tax office bankrupts more small businesses

The Australian Taxation Office said more than 1.5 million taxpayers owed tax debts in 2005/06, though the rate of growth in tax debt owed slowed. Taxpayers owe $10.2 billion in tax debts – that is, overdue tax. The ATO said the number of debt cases increased because many small businesses were failing to pay up. The ATO said it bankrupted 3776 taxpayers last year – most of them small business – for unpaid tax debts.