Yahoo Finance 230 Aussies dob dodgy taxpayers into the ATO every day
The Australian Tax Office has received a staggering 15,000 tip-offs in three months alone, with 300 tip-offs arriving in just one day.
The ATO released new tax data on Thursday, just hours before Australians face their 2019 tax return deadline.
And according to the ATO, it’s receiving more tip-offs of tax-dodging than ever before.
The top tip-offs warn of people:
Not declaring income,
Paying workers “cash in hand” and asking customers to pay in cash,
When someone’s lifestyle does not seem to match their reported income, and
People not reporting sales.
“We’re hearing loud and clear that people are sick and tired of this kind of dodgy behaviour. Running a small business can be a really tough gig, and when dishonest competitors are cheating the tax system by operating off the books, it’s really unfair and makes it even harder to succeed. It’s also effectively stealing from the community,” Assistant Commissioner Peter Holt said.
“So it’s hardly surprising that so many people have tipped us off about this kind of behaviour so we can investigate and keep things fair for everyone.”
Cafes and restaurants named and shamed
The ATO said your local cafes and restaurants are often the perpetrators, as they are the subject of the most tip-offs about bad behaviour.
Holt said there is a “black economy problem” in the restaurant and cafe industry, adding that there is more work to do to support “honest” businesses.
“Trading in cash and paying your workers in cash is perfectly legal but failing to report the income to the ATO and not paying your workers their entitlements like superannuation is not only illegal but also incredibly unfair,” Holt said.
“Regardless of what industry you’re in, if you’re cooking the books, your competitors and workers are probably aware of it. And they’re not hesitating to let us know about it.”
While he accepted that profit margins are low, he said dealing in cash is a “very risky strategy”.
“Cash is not favoured by most customers as a payment method, we all prefer to ‘tap and go’. Also, we know that businesses that deal primarily in cash tend to make more mistakes.”
Hairdressing and beauty, building and construction, cleaning industries also mucking up
It’s not just the hospitality industry - several other sectors are rife with tax-dodging behaviour, the ATO said.
“A tip-off from the community could be the missing piece of the puzzle we need to successfully audit or prosecute someone who is illegally operating in the black economy, so we really value and rely on the community letting us know when something doesn’t add up,” Holt said.
I think my boss is dodging tax
The ATO said Australians who believe they need to make a tip-off can call the Black Economy Hotline on 1800 060 062, or complete a Tip-Off form here.
Earlier this month, the ATO announced plans to visit 400 businesses in Sydney’s Bankstown after a spike in tip-offs.
“We’ve seen a spike in tip-offs about businesses in Bankstown paying their workers in cash and not withholding tax or paying super,” said ATO Assistant Commissioner Peter Holt.
“This is simply not on and it’s not fair for those honest businesses who are doing the right thing as well as the employees who are missing out on their super.”
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