Tax-dodging software facing new penalties

People making and distributing tax-dodging software will face fines of more than $1 million under legislation which has cleared the Senate.

Businesses dodging tax through the use of sales suppression software will face hefty fines as part of a crackdown on the so-called black economy.

Soon-to-be illegal "zapper" software allows businesses to delete transactions from point of sales systems to fudge earnings data and avoid tax.

Under legislation which cleared the Senate on Monday, people found to be creating or distributing the software will face fines of more than $1 million, while those using it could be stung more than $100,000.

Courier and cleaning companies will also be required to report payments to contractors to the tax office, a measure expected to pump $132 million into government coffers by 2020/21.

While there was bipartisan support for the measures, debate dragged on as the government tried to block attempts to bring the bill to a final vote.

Labor senator Doug Cameron said the filibuster showed the coalition was in chaos.

"What we're witnessing here is exactly the problem you have with a government that has no direction," Senator Cameron told parliament.

The government failed to stop the opposition's second attempt to bring the bill to a vote, paving the way for it to pass.

The regime will face a review two years after it become law, with the bill now to return to the lower house to be rubber stamped.


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Source: AAP



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