In March the ATO will be visiting over 500 Tasmanian small businesses that advertise as “cash only” as well as those that are operating outside of the ATO’s performance benchmarks for their industry. During the 2019/2020 financial year the ATO intends to visit a further 10,000 small businesses across Australia.
Businesses in the following industries are most likely to be targeted:
- Restaurants and cafes
- Vehicle repairers
- Personal care businesses including hairdressers and nail salons
- Pharmacies
- Construction businesses
- Clothing stores
- Grocery stores/small supermarkets
- Butchers
The ATO says that businesses who are not declaring income or underpaying workers are contributing to the black economy which may be costing the community as much as $50 billion. The ATO understand that in most cases people are trying to do the right thing and meet their obligations however there is a difference between needing help, making mistakes and deliberate cover-ups.
The ATO have warned that whilst they are happy to assist those who may need assistance they won’t hesitate to take strong action against those deliberately avoiding their tax and super obligations. These visits may uncover this deliberate non-compliance.
The ATO is also running a hotline to allow small business operators to report competitors that may be doing the wrong thing. If you need assistance with your recordkeeping and compliance, please contact our office.
