ATO Expects To Visit 1,800 Businesses In Black Economy Blitz

In an end of financial year compliance blitz, the Australian Taxation Office (ATO) is targeting small businesses in Victoria, Queensland and the Northern Territory and expects to visit up to 1,800 businesses, looking for evidence of black economy activity.

The activity is part of the push to reduce the $50 billion black economy tax gap each year, having identified specific geographical risk areas in each state. Over 10,000 small businesses can expect to receive a visit in the 2019-20 financial year.

The focus is on businesses not registered for pay as you go (PAYG) withholding or GST, but community referrals are also being taken into account when selecting businesses suspected of not doing the right thing. Misrepresenting sales, not reporting income from online transactions and poor record keeping are all issues the community have raised with the ATO. The ATO agents will also visit with the tax practitioners of small businesses to “better understand the drivers behind agent behaviour and provide education and support to encourage willing participation of their clients in our tax and super systems”

This article forms part of our Business Accelerator Magazine. Download the latest edition HERE or browse other articles from this edition below:

• The Importance of Local Search Marketing
• End of Year Tax Planning Guide
• Buyer Beware - Before You Buy a Business
• Thinking of Renovating Your Investment Property?
• The 2019/20 Federal Budget Outlined
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