Businesses that don’t report cash transactions will be under the microscope, warns the Australian Taxation Office.
Cafes and plasterers that don’t report cash takings will be “under the microscope” in the year ahead, says the Australian Taxation Office (ATO).
Unreported cash transactions will be among the focus areas for the ATO’s compliance program this year, as well as businesses meeting superannuation obligations. Cafes, restaurants, real estate and carpentry businesses are all “high risk” groups, according to the ATO.
The ATO also warned of a crack down on “sham entities”, with plans to review 35,000 GST registration applications.
The ATO posted two examples on its web site of cases where it was revealed businesses had not been reporting sales – one a coffee shop with over $190,00 in unreported sales, another a plasterer with understated sales $649,945.
The ATO says it stopped more than 109,000 income tax returns last year, due to “potentially incorrect or fraudulent claims”.
You can download the Australian Taxation Office (ATO) Compliance Program 2012-13 here.