The Australian Taxation Office (ATO) and the Fair Work Ombudsman have conducted a series of “surprise visits” to food sector and hospitality businesses suspected of doing the wrong thing. It comes amid a fresh warning to businesses trying to dodge their tax, superannuation and employer obligations that they will be found out.

More than 30 businesses in Darwin, including fast food outlets, restaurants and cafes, were visited by the regulators last week as part of Operation Sentinel. The visits were based on information and tip-offs from the community, including workers, and related to suspected “shadow economy” activities.

That includes paying workers cash-in-hand to avoid legal obligations, paying employees below award rates and not paying other entitlements like superannuation, under-reporting or omitting income, and compliance issues with reporting and record keeping.

Hospitality businesses that aren’t complying with their excise obligations have also been put on notice.

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ATO assistant commissioner Tony Goding said there were a range of “sophisticated methods” that could be used to uncover shadow economy activities and catch people doing the wrong thing.

“Cooking the books by ripping off your workers and dodging your tax and super obligations doesn’t pass the pub test,” he said.

“Businesses that engage in the shadow economy are deliberately undercutting their competitors, gaining an unfair advantage over honest businesses doing the right thing and stealing from their employees’ futures. We will find out about it and take action.”

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Fair Work Ombudsman Anna Booth said protecting workers’ rights and holding food sector employers to account was a priority for the government agency.

“Fast food, restaurant and café workers with concerns about their pay or entitlements are urged to come forward to directly seek our assistance. They can report issues anonymously if they prefer,” she said.

Goding said information received through a tip-off was cross-checked and the agency then assessed whether further action was required.

He warned all Aussie businesses that there were “serious consequences” for doing the wrong thing, including fines and penalties for businesses.

It's estimated the community misses out on around $11 billion in taxes each year because of the shadow economy.