Unpaid tax debts soar to $62b as SMEs feel squeeze

Detailed summary

More than 1.35 million small businesses owe money to the Australian Taxation Office, and 71,000 directors have been told they are personally liable for debts.

Debts owed by businesses and individuals to the ATO have jumped to a record $62.2 billion, with 1.35 million small businesses owing two-thirds of the overdue taxes and super payments as they battle a cash-flow squeeze and slowing economy.

Directors of companies are also increasingly being targeted as personally liable for unpaid tax debts for their business, after the Australian Taxation Office issued more than 71,000 director penalty notices (DPNs) for small businesses in the year to June 30.

Opening of the article, excerpted from Australian Financial Review. To read the rest, open the article on the publisher's site.