As the economy slowly recovers from the impact of COVID, the Government will be looking to reduce its burdening debt that grew considerably on the back of handouts such as JobKeeper and Business Support Funds. A real focus will be on those areas where ‘cash only ’ is promoted and not declared.
The ATO recently issued a media release in which they revealed that demanding cash from customers, paying workers ‘cash in hand’, or not declaring all sales are the most common examples of the 43,000 tip-offs it received in the 2022 financial year.
Furthermore, the ATO confirmed that it is actively using intelligence from tip-offs as part of its approach to dealing with the shadow economy. The shadow economy (previously referred to as the black economy) refers to activities that take place outside of the tax and other regulatory systems.
The ATO estimates that the community misses out on around $11 billion in taxes each year as a result of the shadow economy.
Topping the list of industries, the ATO was tipped off about in the past year were building and construction, hairdressing and beauty services, cafés and restaurants, road freight transport, and management advice and related consulting services.
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