Businesses that fail to declare or report all their cash transactions will be exposed this financial year when the ATO commences their crack down on the cash economy.
An estimated 110,000 taxpayers who are suspected of participating in the cash economy will be contacted by mail in efforts to deal with under-reported or omitted income, and cash transactions used to hide or evade tax obligations.
Business taxpayers will be identified through one of the ATO’s cash economy indicators:
- Small business benchmarks
- Data matching
- Allegations of tax evasion by the community
Taxpayers are encouraged to review their records to ensure they have correctly reported all income – especially cash transactions.