Rumors of a blowout in small business tax debts rated a mention in The Australian today. According to the story reported in the newspaper the tax obligations of small and medium sized businesses were at $8 million levels.
The ATO did not confirm the newspaper’s report and provided them with the annual data on taxation statistics available since October 2009.
As at June 2009, the amount of collectable debt at $12.2 billion at June 2009. The ATO’s stock of “debt holdings” mid last year was double the amount of collectable debt, at $24.5 billion. This figure includes obligations in dispute by insolvent businesses and bankrupt individuals.
In its 2009 annual report the ATO said that tax debts owed by business and households have grown by 12 per cent in the year to June 2009. “Collectable debt” had increased by only one per cent in 2008.