The Australian Taxation office has warned that it is closing in on tax cheats and making it harder for people in business who deliberately use cash transactions to hide income and evade tax obligations.
This includes businesses that:
Do not reporting barter transactions, paying cash in hand, skimming of some cash takings and running two sets of books.
The ATO strategies to tackle the cash economy include. Using benchmarks which provide a guide to the expected profitability of a business. More record reviews of businesses and acting on informationreceived from the community on suspected tax evasion.
The ATO also use data matching from various organisations which include: Banks, Austrade, Australian Jockey Club, ASIC, Casinos, Centrelink, Club, Councils, Credit Cards, Department of Motor Transport, Estate Agents and Tennants, Family Courts, Harbours and Marine, Insurance Companies, Media Sourses and Neighbours. This is just to name a few, so you can see that Tax Cheats are on their wanted list.
