PHONE. (07) 5447 1022

  • ATO to focus on cash-only businesses

    Posted on November 1st, 2017 admin No comments

    To protect honest, compliant Australian businesses, the Australian Taxation Office has placed a strong emphasis on targeting the cash and hidden economy.

    The ATO is visiting businesses that deal predominantly in cash, with a focus on those that:

    • Fail to meet super or employer obligations, and that fail to register for GST or lodge activity statements.
    • Operate outside regular small business benchmarks specific to their industry.
    • Show discrepancies between what they have reported and our collected data relating to electronic payments.
    • Operate and advertise as cash only.
    • Income does not correlate with the lifestyle of the business owner, i.e. assets and spending habits exceed what is expected of someone with their reported income.
    • Are reported to the ATO by members of the community or any third party regarding potential tax evasion.
    • Are part of an industry that is known for dealing primarily in cash only.

    When out visiting cash-only businesses, the ATO will be working in unison with local authorities and industry associations to asks questions and discuss:

    • Why the business operates primarily or only in cash.
    • The need to lodge tax returns and activity statements.
    • How to be compliant in relation to tax and super obligations.
    • Different claims and tax deductions businesses can make.
    • The general community preference to have EFTPOS or electronic payment options available to them.
    • Benefits of electronic payment and record keeping facilities.
    • Relaying tools and services businesses can use if they are struggling to ensure they are compliant with Australian tax laws.
    • Any other help they may need.

    If the ATO comes across a business that is doing the wrong thing or failing to meet their obligations, they have a duty to take action. This may result in the business facing an audit and possible prosecution.

    If you have made a mistake and make a voluntary disclosure detailing your errors, the ATO will work with you to rectify this and create a solution.

    tax

    Leave a reply

    You must be logged in to post a comment.