Equifax signs data agreement with the ATO to further strengthen its Commercial Credit Reports
Equifax has signed an agreement with the Australian Taxation Office (ATO) to receive commercial tax default data, with the intention of displaying this information in its commercial credit reports. The inclusion of commercial tax default data in Equifax reports will provide customers with actionable data during the credit application process that was previously not available, allowing them to evaluate risk more accurately.
SYDNEY – 28 April 2022 – Equifax, the global data, analytics and technology company, has signed an agreement with the Australian Taxation Office (ATO) to receive commercial tax default data, with the intention of displaying this information in its commercial credit reports.
The inclusion of commercial tax default data in Equifax reports will provide customers with actionable data during the credit application process that was previously not available, allowing them to evaluate risk more accurately.
Scott Mason, General Manager Commercial and Property Services at Equifax, said: “After almost a decade of discussion, we’re excited to be signing this new agreement with the ATO to integrate commercial tax default data into our commercial credit reports. This data will be incredibly valuable to our customers, as it's widely understood that tax debts are often the last ‘bill’ that businesses typically pay. This means that outstanding tax debt indicates 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.
“This new data stream will help not only our commercial customers, but anyone who uses Equifax insights. Consistently improving our comprehensive commercial and consumer reporting is part of what makes Equifax the leading credit bureau and data, analytics and technology company in Australia and New Zealand,” Mr Mason said.
As of 30 June 2021, the ATO had approximately $38 billion in collectable debt, with small businesses accounting for the majority of this ($24.3 billion)1. With the ATO looking to step up collection after a grace period during COVID, 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.
The ATO may report a business tax debt to credit reporting bureaus if it meets the following criteria2. The business:
- Has an Australian business number (ABN) and is not an excluded entity3.
- Has one or more tax debts and at least $100,000 is overdue by more than 90 days.
- 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.
Sources:
1https://www.transparency.gov.au/annual-reports/australian-taxation-office/reporting-year/2020-21-49
2 https://www.ato.gov.au/General/Paying-the-ATO/If-you-don-t-pay/Disclosure-of-business-tax-debts/
3 An excluded entity is either a deductible gift recipient, complying superannuation fund, registered charity, or government entity.
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