Posted on 28 May '12 by , under General News.
This year the Australian Taxation office will continue its focus on the cash economy operated by many small or micro businesses.
In 2010 the ATO received legal powers to investigate micro businesses (with a turnover of less than $2 million), and show no signs of slowing down its pursuit of offenders.
The major area of concern is the use of cash transactions to hide income and help some businesses evade tax obligations. Key areas include:
paying cash-in-hand wages to employees
not including all of the cash takings, or skimming
running part of normal business activities off the books
not reporting the exchange of GST on all goods and services
avoiding tax obligations by not registering or not lodging returns