ATO to blitz Bankstown businesses following ‘black economy’ spike
The ATO will conduct a blitz of hundreds of Western Sydney businesses this month following a spike of people dobbing in cash-only businesses.
The Express
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The Australian Taxation Office will conduct a sweep of 400 businesses in Bankstown following a spike in “black economy” dob-ins.
Businesses not paying tax, paying their workers in cash or not paying superannuation will be targeted, Peter Holt said, assistant commissioner of the ATO.
“We’ve seen a spike in tip-offs about businesses in Bankstown (engaging in the black economy),” he said.
“This is simply not on and it’s not fair for those honest businesses who are doing the right thing as well as the employees who are missing out on their super.”
The Black Economy Taskforce will be targeting a wide swath of businesses, including those in the food industry (cafes, restaurants and fast food), building and delivery businesses, and cleaning, pest control and gardening businesses.
Since July 2019, the ATO has received 150 tips on Bankstown businesses suspected of black economy behaviour.
Some Bankstown businesses were going as far as refusing to provide receipts to customers — so that they could under-report income and sales to the ATO.
The ATO also expressed concern about the “significant” number of businesses with two years of overdue income tax returns, and the “large number” of businesses with outstanding business activity statements.
“The black economy is costing the community as much as $50 billion, which is approximately three per cent of Gross Domestic Product,” Mr Holt said.
“This is money that the community is missing out on for vital public services like hospitals, roads, welfare, and schools.”
Businesses will be given notice of the audit on the day by phone, SMS, email or letter. They will also receive an invitation to education seminars hosted by the ATO on October 29.
Representatives will carry official ATO identification: a hard plastic card with the coat of arms, the name of the officer, their photograph, an expiry date and a watermark.
Information sessions on October 29, Bankstown Sports Club Grand Hall, 8 Greenfield Parade
ATO business visits information session:
9:30am to 10:30am
6.00pm to 7.00pm
Single Touch Payroll introduction session:
11:00am to 12:30pm
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