ATO points to business debt growth
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The Tax Commissioner, Michael D’Ascenzo, has revealed the degree to which the global financial crisis is impacting Australian small business, with nearly a third of so-called micro businesses carrying a tax debt.
In an address to the Council of Small Business Organisations of Australia, D’Ascenzo said nearly a third of the 2.5 million micro businesses in Australia have a tax debt.
Further, he said notwithstanding some positive signs, the Australian Taxation Office (ATO) expected the number would increase in the coming months.
“There are around 706,000 micro businesses with a turnover under $2 million that have a tax debt. In total they owe the ATO $6.5 billion,” D’Ascenzo said.
Elsewhere in his address, he said more broadly at April 30, 2009, there were almost 200,000 debt cases under arrangement worth over $2.5 billion. Compared with April 2008, this represents an increase of 7 per cent (13,000) in the number of debt cases under arrangement.
AUTHOR
Mike Taylor
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