Equifax signs data agreement with ATO
Global data, analytics and technology company Equifax has signed an agreement with the ATO to receive commercial tax default data so that it can be displayed in credit reports.
The data, which was previously unavailable, will give customers the chance to evaluate risk more accurately during the credit application process.
Equifax’s general manager commercial and property services Scott Mason said the data would be incredibly valuable to customers because tax debts were often the last “bill” that businesses paid.
“This means that outstanding tax debts indicate either an inability to pay, or a wilful decision not to pay tax – both indicators of risk that our customers will now have greater oversight of,” he said.
Mr Mason said the ATO deal had taken “almost a decade of discussion” and the data would help anyone who used Equifax insights.
The ATO had approximately $38 billion in collectable debt, with small businesses accounting for more than $24.3 billion, at the end of last June.
Mr Mason said the ATO was looking to step up collection after a grace period during COVID and increased access to data was important to help businesses navigate debt compliance.
“Understanding a company’s tax information is a vital piece of the puzzle for organisations wanting to manage their credit risk in relation to new and existing customers,” he said.
“The ATO may report a business tax debt to credit reporting bureaus if it meets the criteria where it has an ABN and is not an excluded entity, has one or more tax debts and at least $100,000 is overdue by more than 90 days or is not engaging with the ATO to manage its tax debt.”
The ATO encourages taxpayers with tax debts to speak with their registered tax practitioner or call the ATO on 13 11 42 (8am to 6pm local time, Monday to Friday). More information is available on the ATO’s website ato.gov.au/disclosurebusinesstaxdebt.
Equifax will now join CreditorWatch that is currently one of the only credit reporting bureaus in Australia collecting ATO tax debt default data.
CreditorWatch has been integrating this ATO data into its suite of credit reporting and monitoring tools, including the new RiskScore product.
Tony Zhang
29 April 2022
accountantsdaily.com.au
Hot Issues
- FBT Reminder – Odometer Reading
- ATO’s debts on hold campaign prompts new IGTO guidance
- A comprehensive collection of small business benchmarks
- The 2025 Financial Year tax & super changes you need to know!
- Underperforming employees: When can you terminate?
- A comprehensive list of guides to industry specific tax deductions.
- ‘Renewed concerns’ about economy sees consumer sentiment dip: Westpac
- Oldest Buildings in the World.
- Small businesses may ‘collapse under strain of payday super’, IPA warns
- ATO’s hands tied with scrapping on-hold debts, expert says
- What Drives Your Business Growth and Profits?
- Australian Taxation Office (ATO) shifting to firmer debt collection activity
- Why employee v contractor comes down to fine print
- Sharing economy reporting regime for platform operators
- Countries producing the most solar power by gigawatt hours
- Illegal access nets $637 million
- Accessing superannuation benefits.
- Does your business have a company Power of Attorney?
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- GrantConnect
- 2 in 3 SMEs benefit from instant asset write-off, survey reveals
- Updated guidance on R&D claims
- Do you know how to recover debts?
- Wheat Production by Country
- Types of small business benchmarks
- What is a Commercial Lease?
- ATO warns advisers against suspect R&D tax claims
- The year of workplace law upheaval
- Vimeo test
Article archive
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
What our clients say about us