09 Mar Businesses using cash to dodge obligations

The ATO is ‘cracking down’ on businesses that use cash to avoid meeting their tax, employer and business obligations.  Businesses that do this may:

• fail to report all sales transactions and fail to issue receipts;
• avoid paying GST, income tax, PAYG withholding, super guarantee, insurance and work cover protection;
• report their income below the $75,000 threshold to avoid registering for GST;
• exploit workers by not meeting award conditions and work cover protections; or
• undercut honest businesses by offering cheaper prices for cash.

The ATO warns that workers who are paid cash-in-hand or working ‘off the books’ are often disadvantaged.  Apart from not receiving the entitlements they should be, if they are injured at work, they may not be protected.