Cash business ATO crackdown
Businesses operating in the cash economy will get increased scrutiny in the coming months. The ATO has been sending officers to visit businesses in all capital cities in industries notorious for not declaring all income in tax returns and BASs. Visits by ATO audit team members have been seen in Canberra & Perth with visits in Brisbane & the Gold Coast expected at any time now.
The ATO are said to be focusing on businesses in industries which only take cash payments from customers. Additionally the ATO has indicated it is specifically interested in cafes and restaurants as well as beauty & hairdressing salons.
Government statistics indicated that 45 per cent of businesses in the restaurant, cafe, takeaway and catering industry are potentially cash only, with 14 per cent of businesses reporting amounts “significantly outside” the industry benchmark.
In the hair and beauty industry, 58 per cent of businesses are potentially cash only, with 10 per cent reporting amounts significantly outside the benchmark. The two sectors respectively had the second- and third-highest number of community reports about potential tax evasion, behind building and construction.