Australian suburbs where cash-only businesses are being targeted by ATO
Cash-only companies are the focus of the Australian Tax Office's latest efforts to counter the 'black economy'. The ATO is examining cash-only businesses across the country in a bid to clamp down on black economy dealings. Up to a dozen "high-risk" areas have been identified, where there is a lot of cash usage and withdrawals from ATMs. These include Sydney suburbs Haymarket, Liverpool and Cabramatta. ATO's Deputy Commissioner for Small Business, Deborah Jenkins says the aim is to ensure tax compliance.
$100 Australian dollar notes pop out of a wallet with credit cards, pictured in Brisbane, Tuesday, Aug. 20, 2013. (AAP Image/Dan Peled) NO ARCHIVING Source: AAP
Almost 160 trips to Chinatown in Sydney's Haymarket have been made, with more than 18 million dollars in misreported transactions found.
Following audits of 11,000 companies across Australia that operate through cash only, in the last financial year, seven out of 10 had to increase the tax they were paying.
It has resulted, so far, in nearly $200 million dollars in tax and penalties.
Reporting cash as income is key to passing the ATO's inspections.
Ms Jenkins says it is crucial that business owners do their due diligence in terms of record-keeping and registrations.
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