Yahoo Finance ATO cracks whip on 1,800 small businesses caught up in $50bn black economy
The Australian Taxation Office is planning to pay a visit to small businesses in Victoria, Queensland and the Northern Territory before the end of the financial year in a bid to reduce the $50 billion black economy tax gap.
Just under 2,000 businesses will be receiving a knock on the door over the next month as the ATO attempts to uncover any black economy activity, which they’ve said is shortchanging government coffers.
They’ll be keeping an eye out for businesses that aren’t registered for pay as you go (PAYG), withholding or GST, and have also identified geographical risk areas in each state, so they know exactly where to go.
Assistant commissioner, Peter Holt said that misrepresenting sales, not reporting income from online transactions, and poor record keeping are some of the other concerns the community has raised with the ATO.
Small businesses in Dandenong and Richmond, Victoria can expect visits from late May to early June.
Up to 400 businesses in Maroochydore, Queensland can expect visits from early to mid-June, and 200 businesses across Katherine, Matchelor, Bees Creek, Adelaide River and Pine Creek can expect visits between late May and early June.
The ATO has flagged it is focusing on the following industries in Maroochydore:
Cafes, Restaurants and Takeaway Food Services
Building, Pest Control, Agricultural and Gardening Services
Personal Care Services
Legal and Accounting Services
Some Dandenong businesses that will be scrutinised are:
Building, Pest Control and Gardening Services
Transport Support Services
Automotive Repair and Maintenance
Postal and Courier Pick-up and Delivery Services
Richmond industries under inspection are:
Café, Restaurants and Takeaway Food Services
Computer System Design and Related Services
Other Personal Services
Architectural, Engineering and Technical Services
More than 10,000 businesses are expected to receive visits in the 2019-20 financial year.
The ATO is holding information sessions in the NT’s Katherine Town Council, Queensland’s Maroochy RSL, as well as in Victoria’s Amora Hotel Riverwalk and Punthill Apartment Hotel.
Jessica Yun contributed to reporting.
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