The number of businesses failing to pay their taxes has surged 21 per cent to more than 37,000 firms as a tough economy squeezes cash flows and the Australian Taxation Office aggressively tries to recover a record $54 billion in overdue debts.
High inflation and elevated interest rates are crunching the cash flows of small and medium enterprises, particularly in property, transport, manufacturing, retail and hospitality, according to economists at investment bank Morgan Stanley.
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